Bonnie C

The e-commerce market isn’t disappearing;

it’s simply shifting toward polarization.

The shrinking middle class has led to a decline in products born from consumerism over the past decade. While such products once benefited from the growing e-commerce market, those relying purely on emotional appeal or false brand images are now fading faster than ever.

Today’s consumers increasingly focus on purchasing either high-value, premium products or affordable items emphasizing cost-effectiveness.

Value propositions are not obsolete, but genuinely addressing consumer problems and needs has become far more critical. If your business depends on emotional value alone (and many such products and stores exist), or if your sales have significantly declined, consider the following:

1. Pricing Strategy: Is your productpriced “neither high nor low”? This is the most dangerous pricing strategy. Consider launching other brands to capture either the premium or budget market segments.

2. Product Role: Does your product have a clear purpose in daily life, or is it simply an emotionally-driven item? Unless emotional stability is the sole need of your audience, remember: this consumer group is shrinking. It’s not just about low birth rates or international travel; emotional value alone is no longer sufficient.

3. Discount and Pricing Tactics: Pricing strategy also dictates discounting strategy. How do you alleviate the sense of deprivation caused by consumerism? This is hard to describe but crucial to understand for improving sales.

Sharing this with all of you for reflection and inspiration ：）