The report shared today is: 2024 Consumption Downgrade? Phenomenon insights and game-breaking reports
Featured Report**: Industry Report Think Tank Summary: In recent years, consumption downgrade has become a topic of great concern. With the slowdown in economic growth and the impact of a series of complex factors, the global economic recovery has shown a tortuous W-shaped recovery trend. According to the World Bank**, the global economy will grow by just 2 percent in 20244 percent, the lowest growth rate in the global economy in the last 30 years.
The report shows that in terms of the domestic economy, China's economy has achieved a slight rebound in 2023, despite the ongoing downturn in the real estate market. Thanks to a series of favorable policies, the driving force of domestic consumption on the economy is gradually recovering.
Consumption downgrading and consumption upgrading seem to coexist in some industries. Some affordable luxury brands are facing a crisis, while some cost-effective brands are growing against the trend. The report believes that consumption downgrading and consumption upgrading are not contradictory, but two aspects that integrate with each other.
In order to solve the dilemma of current market development, it is necessary to have a deep understanding of the needs and psychology of consumers. Brand management is facing a new normal, that is, the rational transformation of consumption concepts and the complexity of consumption decision-making process.
Consumers no longer excessively pursue flashy and advanced consumption, but pay more attention to rational consumption, and living within their means has become the mainstream mentality. They want to buy better things for less and see saving as a way of life. But consumers are still willing to pay for their own expression, social needs, and cultural identity.
Consumers' purchase journey has become more fragmented, and the development of social platforms has made it easy for them to access a large number of user experience sharing, so as to make more rational purchase decisions. The abundance of channel options also makes the decision-making path of consumers more fragmented.
Quality is gradually becoming the ticket to the competition. Brands need to provide users with more value, and pursue users' recognition and love. This includes not only digging deep into the life expectations of users, solving user problems by providing diversified products, but also strengthening R&D and the best chain, combining excellent channels, marketing and brand building, to achieve the commitment to users.
According to the report, to maximize user value, brands need to focus on the all-round construction of products, services and experiences. Brands not only need to exceed users' expectations, but also need to resonate emotionally with users and give them meaning in life.
In order to enhance user value, brands can improve and optimize based on six core business dimensions. Strategic positioning, brand image, product innovation, channel construction, marketing promotion and customer relationship management. Only by practicing the hard skills of management and strengthening the systematic construction and expression of the brand can we fully interpret and deliver the value of users.
Excerpts from the report are set out below.