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Consumers Choose Luxury First, Price Brand Loyalty Decline

2014/2/4 13:28:00 390

even though luxury brands are selling stories in China to cultivate brand loyalty, Chinese consumers are still highly sensitive to product prices. The 2013 luxury industry report released by Baidu data center shows that the price of bags and table luxury goods has become a highly sensitive search term for netizens. 
 reporter found that in addition to search for a href= "//www.sjfzxm.com/news/list.aspx ClassID=101112107105" > luxury goods < /a > product itself, price is the primary key word for Internet users to search for luxury bags and watches. In the total search volume, besides "bag" products, "price" is the most sensitive factor. Search accounts for 14.2%, which is much higher than the 1.4% of "true and false" and 0.9% of "word of mouth evaluation", while the search for "brand" is 26% lower than that of the previous year. In the search terms of table luxury goods, the "price" is 15.7%, which is much higher than the 1.4% of the "brand" and 1.2% of the "true and false" product. 
 for this, a responsible person from a luxury e-commerce website in China disclosed to the reporter an internal customer service report. The report said that many consumers call the original price of the goods to consult, so as to compare with the online price and measure whether it is worth buying. 
 an industry insider told reporters that due to the rise of the new channels such as "a href=" //www.sjfzxm.com/news/list.aspx "ClassID=101112107105", "buying on behalf of /a" and "luxury electric business", the consumer's sensitivity to the price of luxury goods is getting higher and higher, and price has become the high frequency vocabulary of search. However, the price sensitive consumption concept of luxury goods is also easy to make profit for the shoddy illegal businesses. 
By P, by 2020, the number of mainstream consumer groups with an annual income of over 106 thousand yuan will reach four hundred million, replacing the previous generation of consumers who are relatively moderate in purchasing power and still pay attention to the purchase of basic daily necessities. These emerging consumers are more self indulgent, focusing on personal enjoyment and have brand loyalty. 
P > McKinsey researchers predict that by 2020, these wealthy consumers will account for 51% of the urban population, far more than 6% in 2010, which are more emotional than the previous generations, and will be more brand conscious than the current mass market. 
 "enterprises will have to act quickly and use the brand of" a href= "//www.sjfzxm.com/news/list.aspx" ClassID=101112107102 "> psychological appeals" /a "to cater to them," the report points out. The report surveyed 10 thousand people in 44 cities. 
 McKinsey points out that the current mass market consumer in China is defined as a consumer group whose family income is 3.7-10.6 million yuan, which accounts for more than 4/5 of the total population in China. 
 the report says that the younger generation of Chinese consumers may be closer to the consumption characteristics of consumers in developed countries. Of the new mainstream consumer groups in China, 41% of young consumers will say they will "buy the best products at a high price", while the proportion of older consumers is 31%. 
Less than P, Chinese consumers, who are known for their savings and unwilling to use credit card consumption, are beginning to pay more attention to foreign luxury brands. 
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The P McKinsey report says that by 2020, the number of Chinese urban residents who can buy private cars and a few luxuries will expand by six times, or about 57% of the total population. 
 "consumers are more affluent and are more likely to prefer foreign brands, which is good news for global enterprises," the report said.