1. The domestic environment has changed!

Since the reform and opening up, China has developed rapidly for 40 years. Our generation's life and ideas have cognitive inertia. Most people have not experienced economic cycles and believe that HE Tuber China's economy will continue to develop and we will get better and better. , everyone’s income expectations are optimistic and they are willing to consume, so we see many families with high leverage debt to buy houses and cars to improve their lives.

However, economic development cannot move forward forever. The economy of any country will have cycles. China has created a miracle of rapid economic development in the world. Even if there is no epidemic, China will gradually enter the stage of slow growth from high speed growth.

It was not until three years ago that the epidemic changed the consumption concepts of many consumers, making consumers realize that there will be a lot of uncertainty in their future income expectations.

Affected by the epidemic, the import and export of goods have been greatly hindered. Therefore, many merchants on 1688 who only do wholesale (B-side) have to turn their attention to the C-side market in order to survive. Many originally required 100, 500 or even 1,000 pieces to start. Things that have been approved for approval are now starting to be approved at a minimum of one item.

The resurgence of cost-effective domestic products is different from the previous wave of replacement of big brands driven by the supply chain and consumer entrepreneurship wave. The shift in consumer demand plays a lower-level reason - changes in the external economic environment make consumers more rational and rational. Be cautious.

The epidemic has affected the consumption concepts of the entire 1.4 billion people in China.

The slow growth of the economy has changed Chinese consumers' expectations for future consumption. When the two are combined, consumers begin to reduce their debt ratios and increase savings, and conservative consumption is an inevitable result.

The socialized supply chain infrastructure is becoming more and more perfect, consumption and purchasing are becoming more and more convenient, and information is becoming more and more transparent. For premium-priced goods, consumers have enough information and choice to decide which channel can buy lower-priced goods. Similar goods.

Compared with the pursuit of high-quality brands in the past, consumers are now more inclined to seek quality "replacement". This is a consumption method that maintains a refined life despite downgrading consumption.

Source factory guides on social platforms have narrowed the information gap between consumers and the supply chain. Which items are OEM and which items are original have become quite transparent.

When consumers are shopping, there are no longer problems of information asymmetry and insufficient purchasing power. Instead, they are problems of product quality, convenience of purchase, full price cost, and consumer communication efficiency.

Consumers' awareness of white brands is also improving. They no longer equate white brands with fake and shoddy products, and will actively look for substitute products from big-name OEMs. For example, 1688 is looking for lululemon's same factory, and 1688 will launch "1688" in 2022. "Yanxuan" mainly focuses on big-name OEMs; it also buys products from the source of origin, such as home textiles from Nantong, children's clothing from Zhili, accessories from Yiwu, etc.

In summary, the essence of consumption downgrade is that consumers are becoming more and more mature, and China has gradually begun to enter a fully mature and developed consumer market.

In one sentence, the characteristics of Chinese consumption can be summarized as follows: Cheap ones are preferred, and you can also buy expensive ones, but you must not buy expensive ones.

At the same time, globally, the middle class has become more rational in their consumption due to the reduction in their expected future income, and is no longer willing to pay the "IQ tax".

 European consumers are pursuing quality-price ratio, and the middle class has a strong demand for discounts. They have tempered their skills in how to provide the best and most innovative products at the lowest price. The advantage of crushability.

China's consumer market has reached a time when it has to change. It requires product differentiation and vertical integration of the supply chain. This is a market law.

In fact, when individual buyers who are more "smart" in consumption after the epidemic encounter factory stores that are eager to export to domestic sales, coupled with the support of the platform, it is not difficult to understand the phenomenon of 1688 going out of the circle.

The current consumer environment brings development opportunities to supply chain and industry leaders.

These merchants naturally have cost and efficiency advantages in the supply chain, and do not have high-cost marketing, distribution or operating expenses. They can squeeze out part of the brand premium and become a substitute.

In addition, low-price goods have always been one of the best traffic sources on the Internet, and they can also be monetized very well - if you capture consumers, you will also capture the next traffic dividend.

The consumer market for 1688 girls will be mainstream for some time in the future. Especially this year, money-saving bloggers have become popular on the Internet, bringing consumers the dual value of "emotional" and "practical". For those who want to get involved, Self-media people can quickly start from scratch, which is a content track worth doing...