Zhang Xiangdong: Consumption Upgrading Should Be Divided Into Two Parts.

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"Is becoming a hot word in investment circles.

VC, which is active in China, will start this year as one of the most important words in investment.

This word really seizing the business opportunities in the new stage of China, but just like all hot words, once used frequently, it will become vague and vague. It will become a universal key and become a template answer.

A very interesting example, from the founder of the 711 chain, he was 711

In his memoirs, he told a story of the start-up period: he observed every shop's discount sale, and an old lady would come to buy a lot. Only after tracking interviews did she realize that the old lady was affected by war and that there was always the shadow of sugar shortage in her heart.

Although sugar is no longer scarce, life has long been far from war, but pursuing cheap has become a habit. What people want is "having" to fight against "no".

When the basic needs of the material have been satisfied, the economy has entered a period of rapid development. The new generation of the urban population is out of hunger. Their consumption behavior is different from that of the previous generation. They seek quality standards.

In the form of urban life, the standard of living has a stratification, which is the division of the class.

Attaching importance to quality, attaching importance to materials and attaching importance to design.

On this whole, the "consumption escalation".

Looking back at the history of consumer brands, "cheap" has won quickly.

And the "quality" rooted in the hearts of the people has built up a long-term brand.

For startups, breaking through in search of "cheap" can not make progress in quality. The next stage of consumer brands must be built on quality, and quality needs to be invested.

In pursuit of breakdown pricing, it is difficult to do well in quality.

This is why we insisted that the inspection standard of bicycles is European standard at the beginning of the car making. The folding series galaxy is also tested by Euro standard 130%.

Quality will be perceived by users and then identify with the brand.

In the past ten years, China has rapidly completed the pition from the rural population to the urban population.

In the 80s of last century, China began to adjust its posture and enter the stage of market economy. In the main sense, the original "city people" and "country people" were only of different types of work. With the gradual acceleration of population movement and the expansion of university education and so on, the urban life began to accelerate in a short period of time and ran towards the template of modern cities.

It is reflected in business opportunities, and we used to be a sugar collector, but today's new generation of Chinese urban population is starting a new stage, that is, the consumption stage of "quality identity".