The influence of consumption degradation on enterprises: the change of marketing strategy, the decline of sales, the decrease of enterprise profits, etc.

1. Changes in marketing strategies

Enterprises need to readjust their marketing strategies to meet consumers' demand for demotion. It is necessary to pay attention to the cost performance of products, provide more favorable prices and services, and at the same time enhance the brand affinity and user experience.

2. Decline in sales

With the degraded demand of consumers, the sales of high-end products or services will decline. Enterprises need to find alternative marketing methods to increase the sales of low-priced products or services.

3. The reduction of enterprise profits

The degradation of consumption will affect the profit level of enterprises, and then affect the operating conditions of enterprises. It is necessary to strengthen cost control and refined management and find new profit points to ensure the healthy development of enterprises. In short, enterprises need to carefully analyze the impact of consumption degradation on themselves, flexibly adjust marketing strategies and improve the competitiveness of products and services in order to achieve better sales performance in the market.

reasons and results of consumption degradation

generally speaking, consumption degradation is caused by economic depression, income decline, price increase and other factors. In this case, consumers are more inclined to buy cost-effective goods and services, rather than blindly pursuing brand and quality. In contrast, consumption upgrading refers to consumers' rising willingness to spend when buying goods and services, pursuing brands and quality, and being more willing to pay higher prices for high-quality goods and services.

Consumption upgrading generally occurs when the economy is prosperous and the income is increasing. People are more willing to spend money to buy better goods and services to meet higher consumption demand. Consumption downgrade and consumption upgrade appear alternately, and the relationship between them is mutually reinforcing. In the case of economic depression, consumption degradation may lead to consumption upgrading. In the case of economic prosperity, consumption upgrading may lead to consumption degradation.