What Is The Upgrading Of Consumption?

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With the emergence of new "draught" such as membership consumption, does consumption upgrading really exist? What is the "upgrading" of consumption upgrading?

The rise of the middle class shifts material consumption to service consumption.

In 2016, 7 monthly magazine pointed out that the number of middle class in China (annual household income of 76 thousand and 600 -28.6 yuan) increased from almost zero in 1990s to 225 million today.

The rise of the middle class is accompanied by the acceleration of urbanization in China. At the same time, the Internet has also made the global information pparent and highly spread. Apart from having more income to control, the choice of consumption has also expanded from domestic products to the whole world. In the past two years, the explosive growth of cross-border electricity providers and luxury consumption is the best evidence.

Nowadays, 80 and 90's have become the mainstream consumers of the society. Eating enough and being able to wear warm clothes is not what they are worried about, and eating better, acquiring more quality products and experiencing a better and richer life are the main demands of this group.

McKinsey's June report on China's power to reshape the global consumption pattern pointed out that China's consumption structure is more and more similar to that of developed countries. By 2030, the total household expenditure on food will decrease by 18% in the whole year, while the expenditure on "selected goods" and "secondary necessities" will increase significantly.

When price is no longer the primary criterion for deciding whether to buy or not, it means that consumption upgrading is already taking place. The demand for living consumption has been pformed into an improved demand. The consumption of material goods has changed to a service-oriented consumption. The new consumption pattern has also quietly formed. Nowadays, better service and emotional satisfaction are more important after 80 and 90.

Content business and membership system wind up is true service, which is pseudo demand.

Consumption upgrading is both an opportunity and a challenge for the retail main body. As the demand side becomes more and more difficult to satisfy, the retail main body has spent a lot of thoughts from the commodity presentation, shopping experience and services, and gradually formed two main development directions.

One is the content electricity supplier represented by the public number electricity supplier, the net red brand, and the other is the membership consumption represented by the US Costco.

Content business is also the product of the net red economy nowadays. The longer people stay on the social platform, the more vulnerable they are to be influenced by big V and net red. They even want to get consumer advice from them. "Red pepper", "vcruan", "Sydney" and other annual income tens of millions of net red shops emerge as the times require. People seem to be willing to buy the products of net red at higher prices.

The price of the same clothing sold by the Internet is far higher than that in other shops. The content providers have caught the emotional appeal of the traffic crowd through the net red, but this method is probably at a distance from the consumers' pursuit of quality in the consumer upgrading era. It is more like a re packaging of goods, and does not really enhance the quality and consumption experience.

But it is easy to see a trend of consumption. People are more and more lazy to compare themselves, and then purchase decisions. They want to get more guidance in the process of consumption.

The US Costco membership consumes 4000 SKU to help members pick out more quality selected products, deeply loved by the American middle class, and has grown rapidly against the declining retail market. It has been promoted to the second largest retailer in the United States and has become WAL-MART's most powerful opponent.

The advantage of Costco is that it attracts consumers with selected products under its membership system. It also keeps customers with value-added services such as free tire installation, free eyesight inspection, mirror frame adjustment services and free parking, so that consumers can get an ultra expected experience and enjoy a sense of honor in Costco. These members no longer come to buy goods, but to purchase services.

The membership mode of Costco keeps the increasingly fastidious consumers from the service, no longer passively caters to the market, but actively creates new consumption service system to lead the market, which is the strength and competition point of the merchants under the consumption upgrading outlet.

Consumers show the weakness of e-commerce promotion, how to pull customers back with services

Looking back at the domestic market, most of the electricity providers still keep users in the form of promotion and spike, but consumers are getting tired. Homogenization of goods on the platform also makes it difficult for consumers to make purchase decisions.

There are also electronic business platforms that have introduced membership, but still do not allow freight to drive users into membership.

The upgrading of consumption is not only an opportunity for the electronic business platform or the traditional retailers, but also an opportunity to break the pattern and catch up with the competitors.