On the surface, the pursuit of profits by companies and the pursuit of low prices by consumers seem to be irreconcilable contradictions. But just like not all consumers will care about the actual value of the goods, the contradiction between ** and value still needs to be analyzed in specific situations.
From the consumer's point of view, its ability to accept brand premium needs to be combined with itEconomic strengthwithConsumption concept。Some people need symbols to show their social status, so there is a certain demand for high-premium products. Some are more cost-effective and more averse to products with high product premiums.
In order to flexibly adapt to the high-end consumer market and the ordinary consumer market, many companies have passedCreate two or even more brandsto increase their share of the market. Taking Huawei as an example, there is a home that focuses on the high-end market, and there is also a glory that focuses on cost performance, both of which have achieved good market performance in different tracks.
The struggle in market segmentation is a problem that enterprises have to face in the current market environment. Compared with the past when communication technology and logistics technology were not developed, out of the current buyer's marketConsumers have more decision-making power。After more than ten years of rapid development, the current market demand is becoming increasingly saturated. In the past, the effectiveness of the "wide net" approach has gradually declined, and if we want to continue to expand our market share, we need to give full play to the long-tail effect of market segmentation.
Although the current market environment has made consumers' consumption behavior more and more rational, this does not mean that all consumers cannot accept brand premiums. If you want to improve consumers' acceptance of products, you need to satisfy the perceived value. In short, brands need to give consumers a reason to say "this product is cost-effective". Even if it is a high premium,As long as the brand can provide values such as functionality, emotion, and cultural symbols, it can bring a corresponding high experienceand still be accepted by the target audience.
If brands want to alleviate consumers' sensitivity to **, they need to weaken the consumer attributes of the product itself and create sufficient added value for it. The cultural experiences that these value-added brands can provide are relevant and can effectively increase user loyalty. If it is just a simple price increase, it will definitely not be accepted by consumers.