Trading up strategy meaning

Squeezed by tighter finances, many consumers — most, in fact — are not walking away from the things that matter most. Instead, they are prioritizing those things then trading off everything else to afford them.

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Brands suffering from trading down have simply done a poor job of making themselves a priority worth trading off to get. Some brands are obvious priorities, having enjoyed great success during the Great Recession.

Restoration Hardware. Just to mention a few. With the recovery lagging, consumers will continue this process of putting some things at the top and everything else at the bottom. People have not given up their ambitions for the good life.

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• How to position your brand to convince consumers to trade up or trade down.

Frugality is a coping mechanism not an aspiration. A sports metaphor helps. The expansive era of trading up was like the spread attack of an offensively minded team whose strategy for winning is to accumulate points. The difficult era of today finds consumers thinking like a defensively minded team that still wants to win, but more by waiting for opportunities to arise than by driving hard to run up the score.

Trading off is defensive. It involves some mix of trading down. Consumers remain aspirational. Brand marketers can still sell to hopes and dreams, provided such selling properly reflects the ways in which consumers are striking the balance financially. Trading off is a path to purchase in which buying is more episodic, with the constancy of consumer reserve interrupted periodically by bouts of mad spending as consumers seize the moment. Just look at the holiday season: bursts at the beginning and the end with a lull in the middle that nearly panicked anxious marketers.

Acting slow then fast then slow again, and so on, is what trading off looks like.

The key thing to note, though, is that there is not enough to go around in an era characterized by lower spending, a smaller economy and consumer prioritization. Some brands will lose. No rising tide will save the day by lifting all boats. With prioritization in full swing, the consumer consideration set now crosses category boundaries.

For example, vacation travel may rise to the top by trading off against a down payment on a new car or a kitchen renovation or dinners out for half the year. Just being in the consideration set is not enough nowadays. To secure their fair share, brand marketers must rearticulate their value propositions with trading off in mind, giving consumers good reasons not simply to consider a brand but to put it at the very top of the list.

Notify me of followup comments via e-mail. Instead of saving money, or paying much attention to price—performance ratio, the young generation prefer to pay for services and personalization. This will also have a deep impact on the future of the consumer goods market in China. First of all, brand concentration will certainly increase. Second, the personalized product is also a direction. In the end, there will be more demand for service-type goods, and also the classy package of goods will be important to show the personality and taste of its user.

The figure below shows the annual growth rate of different types of good from to Communication equipments have the biggest growth rate. At the same time, we can see that since the Internet media replaced traditional media, the slowest growth in the five years was the sales of traditional books and magazines.

Whether trading up or trading down is related to macro-economy. China will probably become the country with the largest number of middle class in the world. Trading up is everywhere.

The mainforce of consumption in china: the midd le-class The nominal GDP growth rate of the Chinese economy over the past 30 years exceeds that of any country in the world. Key feature of the middle class in china: freedom and independence The middle class, as a highly educated group, increasingly seeks freedom and independence. Trading up is everywhere In the past few years, the market share of brand merchants has risen rapidly. No matter it is food, clothing,or housing, people are increa singly spending more on branded products.

Young people are still eating snacks, but instead of having street food, they prefer sitting in a clean, well-decorated resturant. In Shanghai, more and more old convenience stores are beginning to disappear and replaced by new convenience stores with better services and products. For example, the family, seven-eleven, Rosen and so on. Many people love buying seafood in Hema , a chain supermarket run by Alibaba.

Although the price of those crabs and shrimps is relatively high, they are willing to pay m ore to experience good services and buy quality-guaranteed products. Nowadays, people are hardly drawn to lowly-priced bubble teas.

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Instead, some brands such as Xi Tea and Lele Tea are constantly lining up for highly-priced bubble teas. Recently, Lele Tea has come up with a new product named Zangzang Tea. It becomes a big hit once it comes out. If we look at datas in recent years, we can fin d the changes.