【Economic】 The economics of new

【Economic】 The economics of new business behavior after 1995s

陶Aaron 陶Aaron 

The economics of new business behavior after 1995s

In today's economy, with the first batch of post-1995 college graduates, the post-1995 generation has gradually become the main force of consumption.Today's new consumer brands and consumption channels, if you do not understand the post-1995, it is difficult to grasp their needs.I will try to explore the post-1995 values and consumption concepts through this article.

As a post-1995 generation, if one word is used to describe the consumption or values of our group, I think it is "reality".This is a group of abnormal reality, no longer inspirational, do not talk about feelings.We are more self-conscious and we like to please ourselves.

Post-1995 consumption characteristics

I.Reject perfection and masquerade, and prefer authenticity and grounding

Twenty years ago, "queen shopping" was a goddess on high. She was perfect, impeccable and unreachable. On a huge billboard, she told you "you deserve it" with her unquestionably arrogant eyes.

After 20 years "shopping queen" is the girl next door, she USES the mobile phone selfie video, while removing makeup, while telling you how this makeup remover oil is easy to use, must buy, may also conveniently squeeze a acne.Real, earthing, do not install, it is the image that 95 hind accept more.

II.Strong consumption desire and diversified consumption demands

In the face of consumption, the post-1995 generation is more able to face up to their consumption desire than the post-1980 generation. They advocate the Buddhism system for health preservation, while constantly satisfying their consumption desire.

The increasing consumption demand and limited income lead to the polarization of young consumers' consumption behaviors: on the one hand, in some high-frequency daily consumer goods, they choose "consumption degradation", pinch pennies, pay attention to cost performance, and are unwilling to pay for the brand premium easily.

On the other hand, in some low-frequency but personalized consumer goods, they have obvious "consumption upgrade".Go to a boutique cafe for coffee.

I call this polarization the "circle of friends phenomenon" : all the consumption behaviors that are not suitable for social media display, such as daily facial mask or daily maintenance products, are degraded.

Consumer goods and places that are cool, good-looking and suitable for social media can enjoy social media premium.

III.Flaunt your values and self-deprecation

"Self-awakening" and "self-pleasing" have become the labels of young people born after 1990/95.

This is reflected in their choice of consumer goods, which is de-monopolization.

Popular brand virtues are no longer valued, and the brand appeal of the post-1995 generation is individuality, fun and freshness.

From the information acquisition, purchase decisions, born in the Internet era after 1995, are showing the characteristics of fragmentation of information, choice diversification.It is worth noting that "interesting" is a necessary character for young people to consume.

The business opportunities behind the post-1995 consumption concept

From the perspective of an entrepreneur, I can predict some business opportunities by analyzing the consumption behavior and psychology of the post-1995 generation.

I. De-channeling: face up to the D2C mode of consumers

Brand channels have changed. The channels for the post-1995 generation to obtain consumption information are no longer offline stores and brand advertisements, but social media platforms.

According to the survey, the post-1995 generation took WeChat public account, weibo and moments as the mainstream platforms to obtain network information.At the same time, I found that the post-1995 generation excavated their own fashion home, such as QQ space, AB station and ins, etc., and that the post-1995 generation had a high proportion of use, which reflected the behavior of avoiding acquaintances to socialize.

In the traditional model, the brand is responsible for market positioning and sales are distributed through distributors, which is outdated.Brands in the new era should know how to contact with consumers, understand the psychological demands of young people, and understand the marketing methods of these social media platforms.

Therefore, the D2C(Direct to Costumer) model that eliminates channel distribution and goes directly to consumers is the form of brand sales that I'm more concerned about.

II. Attracting attention: appearance level economy in the post-kol era

The communication channels of consumer goods become social media platforms, and the post-1995 consumers also need to satisfy their "social attributes" and "show-off psychology" when they consume.

Therefore, when brand positioning and marketing, we have to take into account the new group of "KOL" web celebrity economy. Even when designing, manufacturing and manufacturing products, we have to consider the communication attribute of this commodity in advance: is the appearance level high enough? Is there any communication point?

This phenomenon can be seen not only in local brands, but also in many luxury brands and sports brands. We can see that many luxury brands (such as balenciaga, LV and supreme) are very attractive in design.

III. Rational consumption: pay attention to cost performance

Today's young consumers will not easily pay premium for the brand, and their consumption is more rational, especially the demand for daily high-frequency use. They pay more attention to cost performance and functionality.

Brand needs to grasp the user this psychology, strict control of quality and price, do "easy to use and not expensive", there is a chance to win the hearts of consumers after 1995.

IV.Enjoy yourself in time: secondhand deals, rental markets, and installment plans

Consumers born after 1995 have diversified consumption desires. They are unwilling to save money to buy a house and like to have fun in time.

The first is the boom in second-hand and rental sales.Young people today, the desire is very strong.They value the experience of consumption more than long-term ownership.So if you can't afford luxury goods, buy used or rent them.Rent a house, rent clothes, rent digital products and so on.Young people are very receptive to second-hand sales and leasing.

Another interesting phenomenon is that installment payment is very popular among post-1995 people, and they not only buy expensive goods in installment, but also consume low-priced products.According to the data, 24.4 percent of the post-1995 generation bought goods under 500 yuan by installment.And the consumption distribution that USES instalment payment in 5000 yuan of goods below is more even also.

Thus, consumer goods platforms or brands can further stimulate the consumption power of young users by adding consumer finance loans.

To sum up, through the observation of the values and consumption psychology of the post-1995 new group, we can find that the new group brings new demands, which in turn stimulates the reform of channels and marketing, and these changes also give new business opportunities to grow.

Reference:

[01]Brown,H.D. New Business from the young,2018