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On August 23rd, data from LeXin's installment Le Mall showed that from August 1st to August 22nd, the growth rate of household appliances was significant in third - and fourth tier cities, with air conditioners ranking first in sales. Gas stoves and range hoods grew by nearly 30% month on month in first - and fourth tier cities such as Tangshan, Linyi, and Huzhou, while water heaters grew by over 100% in first - and fourth tier cities such as Zhoushan, Qingyuan, and Longyan. A large number of upgraded, green, and intelligent products flooded into the sinking market to meet the consumption needs of young people.
2024 is the 'Consumer Promotion Year'. At the end of July, the "Several Measures on Strengthening Support for Large scale Equipment Upgrades and Consumer Goods Trade in" was released, with multiple measures supporting the expansion of scope and categories, and the improvement of subsidy standards; In August, the "Opinions on Promoting the High Quality Development of Service Consumption" were issued, requiring the exploration of the potential of basic consumption, the stimulation of improved consumption vitality, the cultivation and growth of new types of consumption, and the optimization of the service consumption environment. As an important force in boosting consumption, consumer finance institutions are playing an increasingly important role in expanding and improving consumption.
According to the consumption data of Fenqile Mall, young users in the sinking market are mainly interested in "white goods" including household kitchen appliances and laundry equipment, which are used to meet daily household needs such as refrigeration storage and cooking. Although the growth rate of "black electricity" mainly used for entertainment such as audio and game consoles has slowed down, the computers required for daily life and office use have still increased by nearly 10% in third - and fourth tier cities such as Yueyang and Lianyungang.
Related research predicts that by 2030, over 66% of China's personal consumption growth will come from lower tier markets. The sinking market covering third tier and below cities, as well as vast rural areas in towns and villages, is dominated by consumers such as silver haired groups, young people in small towns, and invisible new middle class. They often value product reputation and are sensitive to prices. Their consumption habits tend to be rational and they choose to purchase the items they truly need.
It is worth noting that the trend of the younger generation rejecting waste and advocating frugality has further increased, resulting in a significant increase in the sales of second-hand goods on the Fenqile Mall. Yan Shu, Vice President of Lexin, said, "Young consumers are more cautious and rational, and are more pursuing high-quality and cost-effective consumption than ever before. Installment Joy Mall will continue to focus on the consumption habits, methods, and concepts of young consumers, and launch new models such as factory stores and Zhenpinhui to meet the diverse consumption needs of young people
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