As China's middle class gradually awakens, what should companies do?

In the past, China's consumer market had a serious bipolar consumption phenomenon. One is low-end consumption, the other is luxury consumption. According to the analysis of the marketing general manager of Shanghai Zhilang, one intuitive feeling caused by the shortcomings of two-tier consumption is that China’s middle class is hollowed out. This is why most multinational companies are successful in their own countries, but they often fail when they come to China. An important reason for frustration. In China today, the plot has completely reversed and the situation is completely different.
1.
The gradual awakening of the consumption consciousness of the middle class requires traditional enterprises to accurately grasp consumer psychology
The middle class not only carries the label of income, but also the concept of self-identification. In the past, China only The poor and wealthy, and then after entering the consumer market, the consciousness of China's middle class gradually awakened, and then there were the first generation of only children in China. They did not rely solely on their own income for consumption, they controlled three families (both parents and themselves) consumption, and the excess material basis determines the inevitability of consumption. For example, Hangzhou Yuyi Car Cushion Industry, which is cooperating with Zhilang Marketing Gong Yongjun, as representatives of the middle class, car owners are more willing to spend more money to buy a car seat cushion that is good for health, rather than just thinking about food and clothing. Therefore, the transformation and upgrading of traditional enterprises must accurately target consumer groups and grasp the consumption awareness of the middle class in order to obtain higher returns.
2.
The rising consumption power of the middle class with high savings requires traditional enterprises to have accurate products and price strategies
According to authoritative statistics, China’s net savings rate is as high as 10%, which means that China has potential consumption Ability, due to the lag in consumption awareness, has not been fully released. New consumer subjects, new consumption awareness, and new consumption capabilities will create a huge market for middle-class consumption. According to testing, China's economy will only grow in the next few years, but the consumer market will grow at a high rate, and the health industry will grow at a high rate. Therefore, the transformation and upgrading of China's traditional enterprises must focus on quality growth and value growth.
3.
Traditional enterprises must focus on branding when transforming and upgrading, and seize profits from consumption spillovers
According to statistics, China now has more than 100 million people traveling abroad every year, with an average consumption of 10,000 yuan per person. Purchasing power ranks first in the world. Gong Yongjun believes that the root cause is that domestic consumption demand cannot be met. A major shortcoming of China's economy is that products go global, but brands are rejected. Therefore, the transformation and upgrading of traditional enterprises must pay more attention to the development of brands.