Marketing strategies under the trend of consumption upgrading: shifting from blindly believing in high-price positioning to enhancing value perception

As consumers’ consumption perspectives change, how should brands seize the highlights of their products to attract consumers’ attention?

Zhong Xue Gao, once known as the "Hermes of ice cream", has been forced to survive after multiple enforcement actions. Its highest price was 60 yuan, but it has dropped to 2.5 yuan now, but still no one is interested in it; the "healthy noodles in the study" - Hefu Lamian has also been reported to have a large-scale layoff.

However, financial report data shows that its losses from 2020 to 2022 have accumulated to about 716 million yuan; the share price of Chabaidao, the "second stock of new tea drinks", has continued to fall since its listing, and the investment community is extremely pessimistic about its prospects. New brands that once developed rapidly in the wave of consumption upgrades, when economic development returns to normal and the traffic of Internet celebrities begins to recede, it is clear who is swimming naked.

This made me think: Has the trend of consumption upgrading come to an end? Or is there some other reason that has caused new consumer brands to fail one after another?

There is no single answer, but what I can be sure of is that the trend of consumption upgrading has not stagnated. It’s just that on the road of evolution, some brands have deviated in their understanding and implementation of consumption upgrading.

The joint promotion of economic growth and increased residents' income, experience upgrades promoted by scientific and technological progress, rational consumer choices brought about by information transparency, popularization of the concept of sustainable development and policy guidance have continuously given rise to new market demands and supply innovations, driving the wave of consumption upgrades to continue and move towards a higher quality, high-quality and sustainable direction.

In fact, the core of consumption upgrading lies in the qualitative change of consumption concepts and habits. Consumers are no longer satisfied with basic material consumption needs, but are pursuing all-round consumption demand upgrades in quality, personalization, experience, emotion and service.

However, some new consumer brands simply equate consumption upgrading with positioning in the high-end price range, and regard brand packaging and attracting traffic as the universal key to opening up the market, while ignoring the fact that what consumption upgrading actually needs most is real value creation.

The author believes that brand marketing in consumption upgrading should be based on high-quality products, unique personality, and innovative marketing, so that consumers can gain a higher perception of consumption value. At any time, products are the first brand power and the vitality of the brand's long-term foundation. Consumption upgrading puts higher requirements on product creation in the brand marketing process: it is necessary to ensure the real and comprehensive upgrade of products, design, services, etc. to meet consumers' high expectations for value perception.

This requires brands to have a deeper understanding of consumers’ real needs, rather than creating high-priced online celebrity products in isolation. In the era of information explosion, brands need to use tools such as big data and social media analysis to continuously track subtle changes in consumer preferences and psychology, especially among young consumers, where these changes are particularly prominent.

At the same time, brands should continue to deepen quality innovation, from the selection of raw materials to every link of production, and be brave to explore new ideas in design, service models, and marketing strategies, so as to respond to consumers' demand for novelty and differentiation with innovation.

In the fierce competition environment of consumption upgrading, having a unique personality has become a key marketing factor for brands to meet consumers' higher-level emotional and spiritual needs. This helps brands establish differentiated positioning, attract specific consumer groups, and transform products into emotionally valuable and cultural symbols, promote emotional connection and social communication, accurately connect with delicate emotional appeals and individual expression desires, touch the deep emotional and spiritual resonance, thereby occupying a unique position in the hearts of consumers and establishing solid and profound brand loyalty. This not only enhances the brand's market competitiveness, but also opens a new chapter of deep interaction and resonance with consumers.

Innovative marketing is a necessary skill for brands to promote their products and showcase their personality. Marketing is no longer a one-way shouting game, but needs to be transformed into sincere dialogue and communication and immersive consumer experience.

It goes beyond the traditional advertising model and adopts content marketing, interactive experience marketing, cross-border cooperation, personalized customization services, and the use of emerging technologies (such as AR/VR/VR) to create immersive experiences. It not only conveys product information, but also vividly displays the brand's core value and personal charm.

In an environment of information overload, innovative marketing has become the key for brands to stand out, have in-depth dialogues with target audiences, and achieve differentiated competition. In the future, consumption upgrades driven by multiple factors such as economy, technology, information transparency, and sustainable concepts will continue to move forward. Brands that are deeply involved should not only focus on raising prices, but also work together in products, technology, design, production, sales, services, and promotion to help consumers gain a higher perception of consumer value. Only in this way can brands ride the wave of consumption upgrades and achieve long-term development.

This article was originally published in the June 2024 issue of International Public Relations magazine, No. 191

Author: Chen Hao Marketing Expert

WeChat Official Account: Brand Market Relativity

This article was originally published by @品牌市场与论 on Operation Party. Any reproduction without permission is prohibited.

The title image is from Unsplash, based on the CC0 agreement