In the current economic environment, consumers seem to be proving with practical actions that they are not completely stopping spending, but are allocating their budgets more wisely and pursuing the ultimate cost-effective and value-for-money products. This article will provide an in-depth analysis of the consumption logic behind the popularity of Xiaomi YU7 and how it stands out in the wave of consumption downgrade and becomes a popular product in the market.
On the evening of June 26, Xiaomi’s “Human × Car × Home” press conference once again detonated the technology circle and the automotive circle. With the official debut of the Xiaomi YU7 medium and large coupe SUV, its specific configuration and price were revealed, followed by a jaw-dropping rush – in just one hour, the order exceeded 289,000 units, easily surpassing the popularity of the previous Xiaomi SU7 release.
This scene is particularly dazzling in the current market environment. On the one hand, there are discounts and promotions in shopping malls but few people care about them, and the sales department is full of birds, which seem to confirm the argument of consumption downgrade; On the other side is the Xiaomi YU7, a car priced at two or three hundred thousand yuan, and consumers only swipe their fingers on their mobile phones to complete the decision, which seems to announce another consumption logic.
Isn’t it said that consumption has been downgraded? Why do you buy a car that costs two or three hundred thousand yuan?
In fact, the core of consumption downgrading is not that consumers completely stop consuming, but first of all, cut off those face consumption with high premiums and low marginal benefits of experience, some data from different periods last year, LVMH’s sales in China fell by 16%, Quanjude’s revenue fell by 7%, and Chow Tai Fook’s sales fell by 12%, which is evidence.
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But the saved money did not disappear, they were simply redistributed more carefully and shrewdly. People focus their budgets on products that they think will work in one step, last a long time, and really improve the core quality of life.
In short, when a product has the ultimate cost performance and impeccable value for money, consumers are still willing to pay for it.
01 Consumption downgrade is a hierarchical downgrade, not a national contraction
First of all, to analyze the target user portrait of Xiaomi YU7, we can completely rule out the top and bottom of the pyramid – the consumption decisions of the top rich are not affected by the economic cycle, while low-income people cannot touch this price point at all.
YU7’s real target audience is the solid and massive waist of the pyramid: the rich (upper middle class) and the middle class.
Let’s talk about the rich first, their consumption is rational.
In the face of increased economic uncertainty, even wealthy people who were previously insensitive to prices are beginning to become savvy. Instead of simply paying a premium for a brand logo, they set their sights on products that provide real value.
When a 300,000-level YU7 can bring an experience that only 500,000 or even million-level luxury cars have in the past, buying it is a smart consumption choice.
The whole series is equipped with an 800V high-voltage platform as standard, 620 kilometers of energy replenishment in 15 minutes, lidar and up to 700TOPS computing power as standard, Xiaomi Sky Screen PHUD head-up display, front zero-gravity massage seats and rear 135° large-angle adjustment…… These configurations may have only appeared on higher-priced luxury cars in the past.
For the rich who were accustomed to buying luxury brands such as BBA in the past, especially relatively young wealthy people, choosing Xiaomi YU7 is not only extremely cost-effective, but also represents a cutting-edge technology and fashion attitude.
Let’s talk about the middle class, they buy cost-effective when consumption is downgraded.
Xiaomi YU7 is positioned for family car demand, and the middle class with a certain family accumulation is its biggest target buyer. Although 25-300,000 yuan may be equivalent to their income for 1-2 years, which is not a small amount, the Xiaomi YU7 has built a cost-effective advantage that is difficult to match with its high configuration (such as the above-mentioned 800V platform, high-end intelligent driving, luxury and comfortable configuration, etc.) and very competitive price.
The downgrade of consumption by the middle class does not mean not consuming at all, but choosing goods that can provide the best value for money within their financial resources. The Xiaomi YU7 meets exactly this core need, allowing them to enjoy quality and experience that far exceeds expectations on a limited budget.
For these middle classes, downgrading consumption and buying Xiaomi YU7 are not contradictory at all.
02 The “safety valve” that resolves economic uncertainty
When the economic outlook is uncertain, consumers are filled with insecurity. Investment is afraid of losses, shopping is afraid of buying expensive, and decision-making costs are unprecedentedly high.
In this context, commodities that can provide certainty have become the most scarce resources. The popularity of Xiaomi YU7 is precisely because it tightens a “safety valve” against uncertainty for consumers.
First of all, it is the cornerstone of trust built by the Xiaomi brand and Lei Jun’s personal IP.
Over the years, Xiaomi has carved the ultimate cost-effectiveness and kindness in the hearts of hundreds of millions of users through mobile phones and IoT ecosystems. When many people don’t know how to choose among the many brands, buying Xiaomi often becomes a default option that can’t go wrong.
Consumers subconsciously believe that Xiaomi’s strong supply chain integration capabilities determine that its products will not have outrageous brand premiums; Lei Jun’s sincere and people-friendly public image, as well as the car-making declaration that blocks all the reputations of life, make consumers believe that every word he says and every product he makes is trustworthy.
This mentality eventually condensed into a simple belief: “If you buy a Xiaomi car, you will definitely not be cut as a leek.” ”
Secondly, it is the impeccable value anchor of the YU7 product itself.
This trust is built on YU7’s solid product strength. The 800V platform, fast charging, top intelligent driving hardware, innovative cockpit, etc. mentioned above are all visible and tangible hard-core configurations.
Consumers can clearly perceive that every penny they spend is exchanged for real technology and experience. This sense of value of “what you see is what you get” reduces the risk of consumers’ decision-making and makes them firmly believe that they have made an absolutely rational choice that they will not regret.
Finally, it is the market verification formed by the successful delivery of Xiaomi SU7.
If the release of YU7 is a grand performance, then the success of SU7 is the most perfect rehearsal for this performance. From release to delivery, SU7 proves to the market that Xiaomi is serious and capable in building cars, and can deliver on its promises.
The good reputation of the first SU7 owners has formed strong positive feedback on social media, paving the way for the arrival of the YU7. Consumers are no longer the first crab eaters, but are following a proven model of success, and this sense of security is necessary.
03 Expectation management, create a psychological game of “don’t buy or lose”
If strong product strength and brand trust are the hot hardware of YU7, then Xiaomi’s perfect expectation management is the software program that detonates the market. It accurately manipulates the psychology of consumers, and finally leads to a common conclusion: if you don’t buy at this time, you will suffer.
Before the official release of YU7, Xiaomi intentionally or unintentionally released information through various channels, repeatedly emphasizing that it was benchmarked against high-end and full configuration. Even a day before the press conference, Lei Jun also posted on Weibo: YU7 configuration is very high, and the price must also be scientific, cleverly anchoring the market’s price expectations at a high level.
When the final announced price is well below this psychological anchor, the great sense of surprise instantly translates into the urge to place an order. This huge gap from high expectations to low prices is the strongest catalyst for consumers to make quick decisions.
On the night of the press conference, “the first batch of exclusive rights and interests” and “limited-time luxury configuration packages” were given away…… These are all combinations that Xiaomi is familiar with in Internet marketing.
Together, they point to one goal: to create a sense of scarcity and inspire a deep fear of missing out (FOMO) in consumers.
When Xiaomi officials quickly released battle report posters that “exceeded 200,000 in 3 minutes” and “289,000 in 1 hour”, this fear was pushed to its peak. Every beating number sends a signal to coin holders: “If you don’t take action, you really can’t grab it!” ”
This sense of urgency, triggered by collective frenzy, overwhelms rational hesitation, making placing orders a subconscious muscle memory.
After the press conference, many consumers generally expected that the product would be seriously in short supply, and a top order itself had asset attributes. Open the second-hand trading platform, and we can see a large number of posts transferring YU7 orders at a higher price.
This cleverly transforms a one-time consumption decision into a risk-free option that makes a steady profit without loss, lowers the psychological threshold for paying a deposit of 5,000 yuan, and further pushes up the amazing big decision data.
04 Cost-effective superimposed emotional value
In the era of consumption downgrade, consumers will indeed be budget-conscious, but this does not mean that they have become emotionless calculators. On the contrary, when a commodity brings great emotional satisfaction, people are less sensitive to price.
Just like today’s young people, they can grab a Labubu blind box of hundreds of yuan in one hand and eat a dozen pieces of good rice in the other.
And Xiaomi YU7 is the perfect combination of price and emotional value.
First of all, its appearance is the most direct emotional outlet. The smooth coupe SUV form and up to nine nature-inspired colors make the car selection process itself an expression of personality and aesthetic enjoyment.
Previously, the proportion of female car owners of Xiaomi SU7 as high as 40-50% has proved that excellent design and rich colors are important switches that touch consumer decisions, which has nothing to do with gender, but with the common pursuit of beauty by human beings.
Secondly, owning YU7 is a social currency in itself. It represents that you are a technological, cutting-edge, rational and intelligent consumer, allowing car owners to easily show their unique taste and forward-looking in social situations.
Finally, the act of snapping up YU7 is itself a collective carnival that releases dopamine. When social media is swiped by YU7, and when people around you are discussing and rushing to buy, individual decision-making is no longer purely rationally driven. The group effect of being afraid of being abandoned by the trend of the times, the sense of accomplishment after successfully grabbing the order, is a strong emotional stimulus in itself.
Conclusion: Ultimate cost performance + high emotional value = market detonation
The so-called consumption downgrade is not a one-way street to all low prices, but within one’s own ability, with the most discerning eye, to find the most valuable choice.
The ultimate cost performance is the access ticket to all popular products today. It solves the rational torture of consumers whether they should buy or not.
Xiaomi YU7 got this ticket with high parity, so that the consumer’s brain first confirmed: buying it is a wise decision that will not be regretted.
However, it is not enough to be wise, the surging emotional value is the thrust that detonates the desire to buy. It answers the sensual impulse of consumers who want to or not.
YU7’s design, individual color and social image have hit the hearts of users. It makes buying an aesthetic expression, identity identity, and a joyful experience of dopamine spikes.
Therefore, the ultimate cost performance (rational satisfaction) + high emotional value (emotional resonance) = market detonation
When a product can not only satisfy the brain’s calm calculation of cost-effectiveness, but also ignite the heart’s burning desire for love, it has the power to detonate the market.
