Xiaomi SU7 is a hot seller, why do people think it is great value for money?

This article explores an important strategy in product marketing: perceived value. By influencing consumers' purchasing decisions with features and characteristics that users can directly perceive, brands can gain a larger market share. Using the Xiaomi SU7 car as an example, the article explains how to attract consumers through perceived value points such as experience and luxurious decoration to achieve success. It is suitable for product managers, marketing practitioners, and readers interested in product strategy.

Xiaomi SU 7 was indeed a hot seller. On the first weekend after its launch, the queue for test drives lasted until 3 a.m., and the store had nearly 10,000 customers.

It's indeed a bit exaggerated.

Behind the hot sales, I think Xiaomi has grasped a very important point.

What is it?

Use perceived value to influence consumer decisions.

Why do you say that?

You will find that many products are well made, but users cannot perceive the value of the products, so they don’t want to buy your products.

Look at the Xiaomi SU7 and the cars from new forces that you see now, what are the key points they are talking about when they are promoting them?

Refrigerators, color TVs, large sofas, zero-gravity chairs, ambient lights, wireless charging for mobile phones, etc. Xiaomi even installs a mobile phone holder for you, which is extremely considerate.

But these are not the core of the car.

Because the biggest function of a car is transportation, the most important things are safety and core performance.

However, performance such as safety, engine, gearbox, and motor system are all abstract concepts.

Most consumers cannot understand or perceive its value.

The new car-making forces are very smart. They use the value perception tool to the extreme and use luxurious interior decoration to attract users.

Moreover, users' perception of refrigerators, color TVs, large sofas, and large spaces is very direct.

Grasp the details that users can perceive, then magnify them and talk about them repeatedly.

The car is big and luxurious, making you feel that the experience is really great and it seems to be great value for money.

When selling food, looking good is the shortcut.

When selling a car, luxurious decoration is a shortcut.

This is called perceptible value!

If you think about it carefully, this is actually very reasonable. Let's put aside these new forces and think about how we bought cars when there were no electric cars.

Actually, three points.

First, look at the brand. In China, in addition to being a means of transportation, this car also serves as a symbol of status.

Second, look at the style. The exterior and interior should suit my aesthetic taste.

Third, look at the price. It’s fine as long as the price of similar configuration fits your budget.

Most users will not delve into abstract technical concepts such as engines, gearboxes, suspension systems, and acceleration from 0 to 100 km/h.

Therefore, when consumers make decisions, they often do not base their decisions on a professional perspective, but rather on what they can perceive for themselves.

These new car-making forces all come from the Internet industry, so they have a strong ability to grasp the needs of C-end consumers.

So they take these small details to the extreme and use marketing to amplify these explicit values .

Therefore, the reason why they can occupy a place is that they have grasped the user's perception of value, influenced the user's decision-making psychology, and avoided talking about some core things.

They don’t even go deep into the research because that is not their strength, and they focus on marketing points where user value can be perceived.

Looking at the Xiaomi SU7, you will find that Lei Jun repeatedly emphasized the comparison between it and Tesla, because Tesla is the best among electric vehicles and is a benchmark.

So when everyone who is working on electric cars cannot avoid Tesla, especially cars in the 200,000 to 300,000 yuan range, they all have to compare with the Model 3.

At this time, Lei Jun said that my car is 30,000 yuan cheaper than the model 3, and 90% of the configuration of Xiaomi SU7 is ahead of Tesla. Isn’t it worth buying?

This is the comparison between clinging to someone powerful and being a big shot. As a new brand that has just made its first car, this is the safest strategy to stand out.

It's not just the car manufacturing business that requires perceived value to influence consumer decisions; this principle applies to other industries as well.

In the past, if you wanted to open a wonton shop, how would you describe the dumplings? You would say that the fillings were big, the skin was thin, and the wontons were handmade.

But you will find that users are not very aware of these points. I don't feel that your wontons have any different value. For example, how can you compare the fillings?

I think my grandma's stuffing is bigger than yours. Then you said it was handmade, how can I know if yours is handmade? I didn't see it.

What does it matter if it is handmade or not? This perception is not so obvious, it has not been concretized or quantified.

But the wontons at Nanchengxiang are very well made. They say there is one shrimp in each wonton, and when we ate them, there was indeed a shrimp in each wonton.

This is equivalent to the value of Nanchengxiang’s wontons being quantified, and users can easily perceive it and know clearly how much money I spent on how many shrimps I bought.

When I was doing growth consulting for brands, I talked to some bosses and found a problem: entrepreneurs with a technical background are often obsessed with the technological advantages of their products .

Their technical capabilities are indeed very strong, and their people are very focused on business research and development, and the products they produce are indeed very good.

But the key problem is that he is using his own professional perspective, similar to jargon, to describe the product. He is not standing from the user's perspective, so the user cannot perceive the value of your product's technical description at all.

So we encountered a big problem: the product was good, but the sales were not good.

The problem is: your product is for users, not for your peers. It is useless if you think it is good. Users cannot perceive the value of your professional ability.

Therefore, for latecomer brands to catch up, the breakthrough point is to use the ultimate cost-effectiveness + highly perceptible value to allow users to buy better and more functions at the same price, and users will feel that they are getting great value for money.

Perceived value is extremely important. To a certain extent, it determines the life or death of a product. We can indeed learn from Xiaomi in this regard.

Author: Han Xu, WeChat public account: Han Xu HanXu (ID: kenengyouxihanxu)