Lining Caters To The M Type Society To Go Up And Down And Do The Middle End.

The structure has always been based on the low end, which is determined by the overall income level of Chinese consumers.

The industry leading enterprises that have already achieved industrial concentration are mainly supported by low-end products.

Therefore, with the improvement of China's overall income level and the gradual maturity of most industries, the main problem of Chinese enterprises is no longer the scale problem, but the structural problem.

The structure of an enterprise must be consistent with the market structure. The larger the enterprise is, the less likely it is to go beyond the overall market structure as long as the target market is targeted at the domestic market.

The consumers who have just solved the problem of food and clothing and well-off society are moving towards the consumption structure centered on the middle and the end.

China's middle end market is becoming the largest mid market in the world, and the ability to make the middle end will become the basic viability of leading enterprises.

But upgrading from low end to middle end requires not only strength but also intelligence.

Structural upgrading starts from the middle class

The upgrading of Chinese enterprises from low end to middle end often goes through such a path: low-end high-end (pseudo high-end) - middle end, rather than simply take the "low end to middle end" path, which is decided by the particularity of China's middle end market.

China is a typical M type society (or psychological M type society). Its typical feature is the lack of middle end consumers.

Therefore, the marketing of Chinese enterprises is facing such a dilemma: Chinese enterprises occupy the low-end market, and the high-end market is still a pnational brand in a long time.

The lack of the mid - end market has made Chinese enterprises face the dilemma of no way to go.

The company is a typical example.

The original low-end brand wanted to pform, resulting in the "middle class" trap.

The consumption of the middle class is not to increase consumption, but to lower consumption.

The middle end consumption is a "muddy middle zone".

The lack of consumers in the middle end not only shows the loss of income, but also shows the lack of psychology.

The upgrading of Chinese enterprises must start with the recognition of the middle class in China, and they are the mainstay of the middle end consumption.

Although the survey data show that 30% of Chinese families have entered the middle class, many people feel that they are "middle class". This shows that most Chinese do not agree that they belong to the middle class, which is related to the psychology of identity.

The middle class is not only a division of income, but also a consumption mentality.

Knowledge and consumption are too high end or even luxuries, but not for high-end consumption. Enough purchasing power to consume medium value products with high added value is the mainstream of the middle end consumption. Even buying low-priced products with high quality and low price is not a shame.

Therefore, the upgrading of Chinese enterprises is not the issue of income, but the issue of identity.

The consumption behavior of Chinese consumers partly satisfy the basic needs of life or survival. Most of the low-end products belong to such consumption, with low added value, good quality and low price, which belong to rational consumption. The other part meets the needs of social identification, and obtains social identification through consumption, which belongs to sensitive consumption or even manic consumption.

For example, the polarization of cigarettes in China, the low-end consumption of ordinary consumers, and the large number of high-end "face consumption" - social consumption.

When TV entered the Chinese market, according to the consumption level at that time, experts predicted that the 14 inch TV should be the mainstream.

But when Chinese consumers with very low incomes skip 14 inches or 18 inches and buy 21 inch TV directly, experts find the prediction error.

This phenomenon is very common in China.

When consumers buy products belonging to identity cognition, they tend to cross a consumption level.

Luxury consumers in China include many middle and low income consumers besides some high income earners.

Satisfying "identity consumption"

There are two cases of identity consumption: one is self identification.

For example, because I am a middle class, there is a middle class consumption pattern; two, social identity.

For example: because I dare to spend high-end goods or luxury goods, prove that I have money, taste, identity and conspicuous consumption.

The value consumption of mature society is usually the first kind of identity consumption.

Consumers in catching up countries change very quickly, and second kinds of identity consumption are common.

Therefore, the Chinese people always show a disproportionate consumption behavior in the field of value consumption.

Chinese people travel abroad almost the highest per capita consumption in the world, which does not prove that Chinese people are particularly rich.

In fact, travelers in Japan and Taiwan have also shown this way of consumption, but now consumption is more rational.

A person with self identification is strong, and consumption is not easy to be influenced by the environment. Consumption is due to his needs.

A person who seeks social approval is very concerned about other people's opinions. Consumption is for "performance" to show others.

This analysis reveals that Chinese consumers have three characteristics: first, the overall level of income rises, and the ability and sense of value consumption; second, self identity is not high, self identity is lower than income level, and has the desire to change identity and income ability; third, value consumption is best able to bring favorable social identity.

According to the above characteristics, we can find that there are rational reasons for the irrational behavior of consumption: first, low-income consumers purchase luxury goods which are not corresponding to income (occasionally); two, the middle class consumption is not the mid value products, but the high-end products with high-end image.

The high-end products with a high-end image contain two meanings: first, the brand or product image has high-end imprint; and the two is the price at the middle end.

The upgrading of Chinese enterprises must satisfy consumers' value demand caused by identity.

This means that it is dangerous to upgrade directly from the low end to the middle end.

Because this upgrade has two characteristics: first, the price belongs to the middle end; second, the brand or product image belongs to the low end.

For example, if Erie, Hualong, white elephant, Shuanghui and other enterprises pform their products into Jin Yi Li, Jin Shuanghui, Jinhua dragon and golden white elephant, even if the product quality is really good, but because these brands belong to the low end in the overall image, such upgrading can hardly be accepted by Chinese consumers.

Aiming at the moon and flying

Create a brand or product that looks like a high end, and then "go high and low" and stabilize the price.

Such products are highly valued (value, identity) and priced at the right price (corresponding to purchasing power), which is the correct way for Chinese enterprises to upgrade.

This practice is dubbed "aiming at the moon to attack an airplane", or "asking for it."

Many enterprises have been successful in upgrading.

For example:

Hualong did not upgrade to "Jinhua dragon", but "today's wheat Lang", initially feeling like high-end products, now is the middle price.

Shuanghui's upgrading product is not "Jin Shuanghui" but "Wang Zhong Wang". Shuanghui Wang Zhong Wang was initially positioned at the top end, and the initial sales volume was not large.

But Mengniu's upgraded product, "Deluxe", looks like high-end products but is at the middle end price.

Snowflake beer was originally a high-end positioning, but with the price cut, sales expanded rapidly, has become China's largest single brand sales of beer.

This way of upgrading can bring more psychological benefits to consumers who have just entered the value based consumer, and is more conducive to consumers' social recognition.

These facts tell us that Chinese consumers shift from price based consumption to value based consumption.

But constrained by consumption ability and unable to achieve a real leap, it will set up a "pseudo high end" value benchmark, while satisfying the seemingly contradictory demand of consumers' value seeking and payment ability.

Upgrading the structure is not simply a straight line upgrade, but a "high and low to the middle", which requires enterprises to be very familiar with Chinese consumer psychology and marketing wisdom.

When Chinese enterprises adopt this mode to upgrade their structure, high-end multinational brands are also pursuing the mid end market.

ADI enters the two or three tier city.

Selling "Lining price" is chasing the huge middle end market of China in the future.