What is light luxury? Why do more and more people advocate "light luxury"?

The Veblen effect is named after the economist Veblen. It refers to the phenomenon that the higher the price of a product, the more popular it will be.

This is an irrational phenomenon from a psychological point of view.

Because a piece of clothing of the same quality and style will sell poorly if it is placed on a street stall, but if it is placed in a counter in a shopping mall, it can sell for dozens of times the price.

How do people’s consumption needs change as prices change?

Standard Lifestyle

Affordable luxury products are products between luxury goods and affordable products. In terms of price, affordable luxury products are generally US$300, equivalent to RMB 2,090. In other words, the price of affordable luxury goods is in the thousand yuan range, while the price of luxury goods is in the range of ten thousand yuan.

In terms of product quality, the current affordable luxury brands are mainly product sub-lines of first-line big brands, original designer brands and brands with main styles.

In other words, affordable luxury brands have the quality and fashionable style of luxury goods, but are not as expensive as luxury goods or as cheap as affordable products.

Affordable products are like the economy class of an airplane, affordable luxury products are like the business class of an airplane, and luxury goods are like the first class of an airplane. It is also like flying, why would people be willing to spend more? How much money does it cost to choose different cabin classes?

The first reason why the Veblen Effect is established is that price is not only a price, but also a symbol of status. The reason why people are willing to spend more money to buy a product is because of the meaning behind it. The added value of the brand is large enough.

Easy luxury is prepared for the middle class, which has been growing in recent decades. It is a product of the middle class to separate themselves from the lower class. It can be said that light luxury products define the identity of the middle class. products, so they are very popular among the middle class.

It is true that affordable luxury products cannot compare with luxury goods, but for the vast middle class people, it is enough that affordable luxury products can distinguish the people at the bottom.

In addition, people who work now cannot avoid interacting with others. A person's clothing will reflect his social status, wearing clothes of different prices, and even the treatment he receives will be different. .

Affordable luxury products are a basic configuration in many business situations.

Wearing light luxury products is a kind of business etiquette, which shows respect for the negotiation partner and positions one's social status. Light luxury products can improve a person's social status, which is one of the reasons why it is very popular. one.

Placebo Effect

If the same bottle of red wine is sold in an ordinary supermarket for 2,000 yuan, consumers will feel that the bottle of red wine is not worth the price; and If a five-star hotel sells it for 2,000 yuan, consumers will think that the price of this bottle of red wine is very reasonable.

For a piece of domestic steak, if the merchant says it is imported from New Zealand, the higher the price consumers are willing to accept. The second reason why such a Veblen effect is established is that prices change people's expectations.

Vitamin, which has a high sales volume on the Internet, is a very typical example.

Vitamin soft capsules that sell for several hundred yuan are health care products, while vitamins that sell for two or three yuan are medicines. They are both composed of the same ingredients, and even vitamin soft capsules add many harmful substances. Chemical ingredients, but people are only willing to buy more expensive vitamin soft capsules, not medicines that cost a few dollars.

The placebo effect means that the product does not have the effect it advertises, but because the person who uses the product has trust and expectations for it, the person who uses the product feels that the product is very useful.

The higher the price of an item, the greater people’s expectations for it will be, and vice versa.

Often expensive food will not make consumers feel unpalatable, because people have very good expectations for it, and no one is willing to admit that their decision is wrong, so even if Even if the food they buy tastes terrible, they will think it tastes good.

Marketing Strategy

High price means high value. Those who understand people’s consumer psychology best are actually those in marketing.

I believe many people will have a question, that is why brands, large and small, like to advertise constantly, even if no one will buy their products because of this advertisement. This seems to be Waste of money.

But basically the rise of every brand relies on advertising. Advertising will stimulate people's associations. When people want to buy canvas shoes, they will think of Converse; when people want to buy toothpaste, they will think of Converse. Black toothpaste comes to mind.

If a brand wants to become a national brand, it has two ways. The first is to find well-known spokespersons, and the second is to keep advertising.

The reason why people nowadays like affordable luxury products so much is inseparable from the previous advertising efforts of these affordable luxury brands. This is the first marketing strategy.

The second marketing strategy is that the slogans of affordable luxury products are often more stylish, especially the slogans starting with "I", and the promotional images are relatively beautiful, like this Advertising will give you a sense of involvement.

There is a consumer psychology called virtual ownership. Just like when you see an advertisement for a Casio watch, you feel that you have already worn the watch. This watch already belongs to you. You have to buy it. No.

The third marketing strategy is to be good at using price.

If you want to sell a product for 600 yuan, then you need to use 800 as the tag price, and then use 600 as the discount price. This will make consumers feel that they have made money. Consumer psychology, consumers' consumption utility is very high.

In terms of pricing, affordable luxury products have natural advantages over affordable products.

Affordable luxury products often have very high prices, but they also have promotions, and each promotion can save you at least a few hundred yuan. This is a consumer benefit that buying affordable products cannot bring.

If you want to promote the Veblen Effect, you need to remember a very key thing, which is to create a high-value brand.