Low prices must vanish, medium to high trends

? In real life, we can intuitively see many lively cases. The sales of high-priced products are getting larger and the low-priced products are dying. For example, BMW, Mercedes-Benz, Land Rover and Porsche are very expensive. More and more people are opening up. Changhe, Xiali, Jetta, and Santana are very cheap. There are fewer and fewer people opening up; Ipoh, Nongfu Spring, and 100-year-old mountain drinking water. Higher prices, market sales are getting better and better, unified, Kangshifu, Wahaha pure drinking water is very cheap, visibility is getting lower and lower in the market; Apple, Samsung's mobile phones are expensive, more and more people are using, Nokia, Motorola The mobile phone is very cheap, and fewer and fewer people use it...

Looking at the above phenomenon, it is by no means accidental but inevitable. We can do analysis and research from the perspective of economic development laws, marketing theory and consumer trends.

1. Analysis of the law of economic development:

Analysis and Interpretation of China's Per Capita GDP Data from 2008 to 2013:

When the per capita GDP reaches around US$3,000, housing, tourism, cultural consumption and automobiles are the hot spots for investment. From this point of view, it is not difficult to understand from an economic perspective why the real estate market is still hot after 2008, despite the skyrocketing housing prices. Why does China's automobile production and sales volume rapidly leap into the world after 2008? Because the economy has developed to this stage, housing, tourism, and automobiles have become the focus of people's consumption.

With a per capita GDP of more than US$4,000, luxury fashion stores, luxury goods, and art monopoly are popular. Education will become the focus of attention; therefore, in 2013, China has become the world’s second largest consumer of luxury accessories.

When per capita GDP reaches around US$5,000, health care and health will be the growth point for consumption. The per capita GDP reached more than US$6,000 and entered this country in the leisure era.

In 2013, China’s per capita GDP exceeded US$6,700, which means that the country’s lifestyle will gradually shift to a leisure lifestyle. Leisure refers to a kind of leisure life in which the mind and body are adjusted and relaxed in a variety of “playing” ways during non-labour and non-working hours, achieving the purpose of life care, physical recovery, and body and mind pleasure. It is not hard to understand why Apple Mobile is still very expensive and it is still selling well. Scenic tickets are expensive. Why holidays are still in danger? Land Rover cars are expensive. Why are they still not able to mention the reasons for the current cars; because they become people in the amateurs? A lifestyle of shopping, entertainment, and leisure on time and holidays. We are very clear that the premise of this leisure lifestyle is: clothing: from warm to wear, wear fashion, wear a personality change, food: change from eating to eating, eating healthy, living: from ordinary houses to large units , villas and tourism residential upgrade, line: the emergence of the popularity of cars and high-end car consumption boom. These changes mean that prices are no longer the primary consideration of people's shopping, which means that people's consumption is escalating from basic needs to advanced demands of fashion, personality, entertainment, leisure, and health, which means products with slightly higher prices. Will sell big sale. This is determined by the laws of economic development.

2, marketing theory and marketing practice analysis:

From sales to marketing at full speed. The price and the series of marketing activities carried out around the support price constitute the marketing system. Low price or high price is essentially the difference between sales and marketing, which is the difference between product promotion methods.

First, low product prices mean low channel driving power: low product prices determine the low profit margins of product channels, and profit margins are lower when store rentals, labor costs, distribution costs, and people’s living costs are substantially higher. It is difficult for the products to meet the profit demands of channel operators' normal operations. Therefore, they will be marginalized and discarded by channel operators, and then turn to products with higher profitability. This is the core of business, because the purpose of doing business is to make profits. The length of a product's life cycle is not determined by the price, but is determined by factors such as the profitability of product channels, consumer attention, and product quality. Among them, the lack of channel profit space is the main reason that the unity and the 1 yuan of Master Kong’s drinking water gradually shrink in the market, and it is also the main reason why many companies’ bare-metal listed products have few successful cases.

Second, low product prices mean that product pull will gradually decrease, and market activity is low: the ultimate competition between enterprises and enterprises is the competition of brand power, or the competition of customers' minds; and brand building requires investment promotion. Expenses. The low price of products determines the lack of investment in brand building and marketing for enterprises. It determines that brands and products are less active in the market. This is also the fundamental difference between marketing and sales, because low prices lack policies and promotion. Space, lack of favorable display position and bright terminal performance, in turn means that these brands and products will gradually fade out of the consumer's field of vision, and then gradually fade out of the market.

Third, high prices may have high quality, and quality determines repeated purchase rates. As the saying goes, "A price for one price, and porridge for drinking is not for the hungry." It shows that a product can only have good quality if it has a good price, because a good price may have a strong product R&D investment before it is possible to purchase high-quality raw materials and advanced production equipment, so that it is possible to produce high-quality products with quality. It is a decisive factor for consumers to purchase and repeat purchases. This is a truth we all understand. We have found that the best-selling products on the market are relatively high-quality products and are often the highest-priced products in their class.

Fourth, price recognition does not generate purchasing behavior, and value recognition leads to purchasing behavior. The price determines the consumer group, and the consumer group determines the product positioning, that is, the price determines the product positioning. What really determines consumer buying behavior is product value, and product value is the recognition that comes after consumer experience and marketing. However, the consumer experience and market promotion also need to support the promotion of the cost, and these actions can not be achieved by low-priced products. For example, Apple's mobile phone is very expensive, but people are still lining up and buying when the new model is on the market, because the target consumer recognizes the unique value of its stylish design, simple operation mode, powerful function and operating speed; at the same time , Apple's marketing approach is also promoted through consumer experience, consumer experience is to allow consumers to identify the main way of Apple's mobile phone value.

3, consumption trend analysis:

(1) Analysis of per capita disposable income and consumption trend of urban residents

The per capita disposable income of urban residents marks the immediate consumption capacity of urban residents. The faster the per capita disposable income of urban residents has grown, the faster the people’s living standards will increase, and the stronger their spending power. At the same time, this indicator has been used in recent years. Higher than the level of price hikes indicates that the actual living standards of urban residents are improved; the increase in disposable income of residents, the increase in spending power, and the increase in the living standards of residents indicate that the level of consumption of residents must be gradually increased.

(2) Analysis of residents' consumption habits

With the improvement of people’s consumption level, knowledge level, and health awareness, consumers’ apparent consumption trend in recent years is “the transition from perceptual consumption to rational consumption, from common consumption to individual consumption, and from random consumption. Brand consumption development." This is because: First, brand products have better quality, higher trust, stronger traceability, and more guarantees. Second, brand products can meet people's psychological needs. Third, in the fast-paced life, Branded products can shorten people's shopping time and improve shopping efficiency. At the same time, we must be clear about the fundamental purpose of building a brand for enterprises. That is to say, companies must obtain an average value-added return above the industry. In other words, the selling price of a branded product must be higher than the price of a non-branded product. More importantly, the sales of branded products are often at least four times more than the sales of non-branded products.

Therefore, the medium and high-priced products are the development direction, the consumer trend, and the hope and treasure of the future of enterprises and distributors.