CFO

　　1. Consumption demotion is the price rather than the character.

　　

　　Consumption relegation emphasized is the requirement of the price, even if the goods have any quality and tonal, consumption experience shock and novelty, consumers don‘t want to spend so much money to buy, in other words, consumers will not be high price kidnapping, also won‘t pay extra for extra premium goods tax "IQ". This is quite the opposite of a consumer upgrade.

　　

　　Why is that? Because consumers are "mature", they are not all "people are stupid", compared to blindly buying high-quality, high-priced goods, many people are more inclined to "rational consumption". So, consumption downgrades, health is price rather than character, just let prices return to reason.

　　

　　2. Consumption promotion is not inconsistent with consumption upgrade.

　　

　　Consumers generally pursue cheap and fine goods, in reality, however, often is "good" and "cheap" is seldom meet together, so most consumers after the "mature", began to look for to the price, the quality is good, price is not high commodities thus became the object of their favor.

　　

　　It is important to note, however, the level of consumption is often determined by income level, price is to high earners constraints than in low income, as a result, the former can buy better quality goods, the price is more expensive. It‘s like buying a brand new iPhone X, which is a luxury for 10,000 people a month, and it‘s not unusual for a person who is 100,000 a month. Therefore, the consumption reduction and consumption upgrade are not contradictory and can coexist harmoniously.

　　

　　The consumption downgrades around us.

　　

　　For now, the consumption downgrade has crept into many areas of our lives. Here are three examples:

　　

　　1. Sharing economy and second-hand economy: make shopping cheaper.

　　

　　When you‘re ready to go out, the first reaction might be to take out your cell phone, scan, or ofo. When you want to buy something simple, you might consider taking a stroll. When you do these things, you‘re already in the consumer relegation camp.

　　

　　In recent years, Shared economic and second-hand explosive economic growth, such as drops, Shared cycling, idle around fish, and other things that have sprung up, side proved the consumption down this huge market objective existence: use lower prices to meet consumer demand for goods use value.

　　

　　Although sharing tools or second-hand goods can‘t like brand new goods, bring people a brand new experience and psychological satisfaction, but they can bring users the most basic function, use value for temperament of the people who don‘t care about goods, is sufficient.

　　

　　2. Name creation: no longer demanding brands.

　　

　　In the pursuit of branding and personalized consumer upgrading wave sweep across the land of shenzhou, it is like a clear stream, a bright spot.

　　

　　Oddly enough, a merit goods is not "new retail" model, its sales of life class commodity nor pretend bility is too high, but the fire, where in less than three years, out of nearly 2000 stores, sales of nearly 10 billion years. This is a miracle in the offline retail market.

　　

　　Investigate its reason, is the merit goods has a group of a large audience consumption relegation: its product variety, and exquisite craft, the price is not expensive, especially the most goods brand unheard of for a lot of people, it also reflects the "no brand" marked characteristics. And that‘s exactly what‘s going to happen to people who are downgrading.

　　

　　Who says a bargain is nobody‘s business.

　　

　　When it comes to consumption downgrades, there is a lot to be said. Although it is only three years old, it has been rapidly rising from below the third line through "group purchase + low price" strategy and the application of social attributes of WeChat platform.

　　

　　In this context, consumer degradation plays an extremely important role. According to the statistics of aurora big data, 70% of the users are female, and 65% are from low-income people in the cities of the third and fourth and fifth tier cities, and they are price-sensitive customers. A combination of low prices and a steady grasp of the core needs of these people, and a series of commercial operations, is a natural one.

　　

　　As it turns out, most of the products sold on the home page have reached hundreds of thousands of products, and hot style is not rare for millions of products, which is an unimaginable number for traditional e-commerce companies.