Looking back to the first quarter of 2020,we all know that China’s economy was heavily affected by COVID-19.Most people tried to cut non-essential purchasing, however there is one interesting phenomenon to be mentioned: high-value products achieved increased sales during the uncertain times.
Below are some examples demonstrating why added-value products are far more important than price-focused products.
According to the market report,sales of the luxury car Panamera still achieved a strong growth of 68%, and the new Porsche 911 also achieved an 11% sales growth in the first quarter.while the sales of all other car brands in China dropped significantly.
French luxury goods giant Hermès released key financial data for the first quarter of fiscal 2020,a 6.5% year-on-year decrease at the current exchange rate.In contrast, sales of other luxury goods groups such as LVMH, Kering and Moncler, have fallen 15% or more year-on-year.
Hermès stores in mainland China have now resumed operations in April,and sales have increased by double digits compared to the same period last year.
3. High-end cosmetics(CPB, LA MER, La Prairie)
Studies of Prospective Industry Research Institute showed that the sales volume of high-end cosmetics in 2019 account for 51% of the retail sales of cosmetics,and keeps growing,
According to data from the Ministry of Commerce of China,international giants represented by L’Oreal,Estee Lauder,Shiseido,and LVMH account for about half of China’s high-end beauty market.The ultra-high-end brands represented by CPB, LA MER,La Prairie are more and more popular among young Consumer.
Do you still insist that price is a magic weapon to win the market?
Some customers evaluate one product by price,while others care more about the real value.
I have been often questioned by potential customers like”I purchase to sell in the market and with higher cost I won’t be competitive.”
We totally understand that many companies’market strategy is pricing war,as there do have.But if there is another way to win high margin by innovative added-value products,why not try?
Innovation is the most effective way to keep strong competition in a red sea. Like Nokia and Apple company,Apple keeps innovation as its principle and wins the global market of mobile phones,while Nokia stuck on its old technology and lost the market. That’s why Aquark respects innovation from the very beginning.
We are committed to provide added-value products and services to help our partners become more successful in the pool heating industry.
Welcome your comments and opinions of the marketing strategies!
By Sarah Zeng – linkedin
Pad Inverter pool heat pump Specialist | InverPad tech Creator
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