Consumption downgrade refers to the adjustment of consumption behavior chosen by consumers in order to adapt to the new economic reality in the context of changes in the macroeconomic environment or personal financial situation, which is manifested in reducing spending on non-essential goods or switching to more cost-effective goods and services. Here are some examples of consumption downgrades:
Eating out to home cooking: Consumers choose to cook at home in order to save money and eat out less often. Not only does this help save money, but it also helps the family to be healthy, allowing you to control your ingredient choices and cooking methods, and reduce your intake of unhealthy fats and additives. Self-cooked cateringIn contrast to eating out, some people have begun to choose self-cooking and buying ingredients to make their own meals, avoiding the high cost of eating out and enjoying the fun of cooking at the same time. Reduce the consumption of luxury goods: When economic pressures mount, consumers may reduce luxury purchases in favor of more affordable brands or products. Second-hand purchasesIn order to reduce costs, consumers may choose to buy second-hand goods, such as furniture, electronics, etc., which is environmentally friendly and economical. Public transport replaces private cars: Consumers are likely to reduce the use of private cars in favor of public transport, given the cost of fuel and vehicle maintenance. Compare prices with online shopping: Consumers are more inclined to compare when shopping, taking advantage of a variety of coupons and coupons to reduce spending. Sharing economyConsumers may choose to use shared products or services, such as bike-sharing, car-sharing, etc., to reduce the cost of holding assets for a long time. Budget-conscious travel: When it comes to travel, consumers may choose more economical options, such as cost-effective accommodation and transportation, or travel during the off-season to reduce expenses.
These examples illustrate how consumers can adapt to changes through consumption downgrading when faced with economic pressure, and it can also be seen that consumption downgrading does not necessarily mean a decline in quality of life, it is more of a rational and adaptive way of consumption.