---
title: "The Meaning of 'Low Price' Has Changed for Young People"
description: "After the 618 shopping festival, consumption trends show that young people still love big brands but have become more rational, seeking high cost-performance rather than absolute low prices. This shift is driving growth for domestic brands and discount retailers, reflecting a new consumption philosophy of spending less to maintain a decent lifestyle."
author: "望月"
publisher: "New Distribution"
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published: "2023-07-01"
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# The Meaning of 'Low Price' Has Changed for Young People

> After the 618 shopping festival, consumption trends show that young people still love big brands but have become more rational, seeking high cost-performance rather than absolute low prices. This shift is driving growth for domestic brands and discount retailers, reflecting a new consumption philosophy of spending less to maintain a decent lifestyle.

Have you noticed? After 618, consumption has shown some new changes:
Domestic beauty brand Proya's sales in the first 30 minutes exceeded its total sales for the whole of last year, and during the 618 period, its total sales surpassed Estée Lauder and Lancôme for the first time, ranking second in the beauty category.
Discount retail is gaining popularity, with sales of discounted big-brand women's wear, men's wear, and luggage increasing by 20% overall compared to last year, and several deeply discounted big-brand jewelry categories achieving over 100% growth.
The signs of consumption recovery are very obvious. Young people still love big brands, but their spending is not as crazy and impulsive as before.
A few years ago, consumerism prevailed among the younger generation. They chased big brands but scoffed at discounts on them. **In their eyes, the more expensive the item, the more prestige it brought; good brands should not be cheap, and pursuing a quality life should come at a high cost.**
Now, many young people are proving through their actions that their consumption concepts have changed.
According to consumption data from major e-commerce platforms, during this year's 618, many domestic brands and low-price discount big brands saw significant sales growth. The common feature of these products is **good quality and high cost-performance.**
Behind the pursuit of both a quality life and cost-performance is the fact that **after being baptized and tested by various uncertainties, young people have become more rational in consumption.**
Young people's perception of low prices has changed, and they have become increasingly savvy in their spending.
**The Consumption Psychology Behind the Pursuit of 'New Low Prices'**
A few years ago, many young people turned pale at the mention of low prices.
In their view, pursuing low prices was not something to be proud of. On one hand, many believed that a quality life could only be maintained through high spending; on the other hand, in the mutual comparison of consumption, they worried about being labeled as poor by those around them. Even for goods of the same quality, some young people preferred to choose the more expensive option.
Now they think differently.
It's not because their purchasing power has decreased, nor because their desire for a better life has changed, but because they consider more whether it's necessary and worth it. Many have realized that **the most important thing about consumption is to please oneself, not others.**
According to the "2023 618 Consumption New Trend Insight Report" released by Nandu, nearly 60% of people believe they are more rational in consumption, transitioning from fixed-channel consumption to comparing prices across multiple channels, and over 60% of respondents value cost-performance more.
Young consumers' understanding of low prices has also changed: **It's not that only absolute '9.9 free shipping' counts as low price; low price is actually relative, meaning getting quality goods at a more affordable price.**
The report shows that 61.53% of respondents value cost-performance rather than absolute low prices. 56.18% believe low price means ultimate cost-performance, i.e., at the same price, the brand, quality, or additional services are better, accounting for more than half, and this concept is particularly evident among the post-2000 generation.
During this year's 618, questions on Zhihu about "how to choose products" increased by 155.1% year-on-year, with a large number of users seeking answers for good product consumption. Among them, "budget," "high cost-performance," and "good quality" became key discussion terms.
After each digital product launch, they carefully analyze whether it's a "big move" or "incremental," worrying about buying gimmicky "black technology" or becoming a "sucker" who buys at a high point. When discussing beauty products, they don't just talk about brand and price; many seriously compare the effects of skincare ingredients like niacinamide, peptides, and astaxanthin.
Young people are still pursuing a quality life, but they have learned to weigh cost-performance, even spending time researching the performance or ingredients of products. Behind this is a change in their consumption concepts.
On one hand, after experiencing ups and downs, young people have become more pragmatic in their attitude towards consumption.
During the period of rapid economic development, young people were exposed to various new products, had high demand, and easily followed trends and compared with others. But as the external environment changed, more and more young people realized the problem.
A post-2000 girl reflected in an interview with China Youth Net that she used to easily follow trends and buy things she wouldn't normally buy, "In this way, it's not saving money at all; it's wasting money."
On the other hand, after experiencing various uncertainties, more and more young people have developed a sense of crisis and become more rational in consumption.
They no longer engage in reckless impulsive spending but compare prices across multiple e-commerce platforms to find lower discounts. Between international big brands and domestic brands, young people are increasingly accepting domestic brands with higher cost-performance.
**With a pragmatic and rational mindset, young people pursuing cost-performance and falling in love with brand discounts has become a cool thing.**
Life should be down-to-earth. Sometimes being a bit frugal and saving a little is also a good attitude towards life. The most important thing is to make yourself happy and comfortable.
Thus, young people have formed a new consumption philosophy: spend the least money to maintain the most decent life.
Aesthetics expert Matsuura Yataro explained this in his book "Cheap Chic": When everyone has what they should have, comparing who has more is no longer meaningful; goods ultimately return to their essence of use.
**Young People Have Mastered the Art of Budgeting**
Xiao Wang, born after 1995, not only compares prices across multiple channels when shopping online but also has developed a habit: before consuming, she checks whether door-to-door return and exchange services are provided.
When buying clothes online, Xiao Wang often encounters situations where the size or style is not suitable and needs to be returned or exchanged. Many times, she has to contact the courier to send it back before completing the refund, which is very troublesome. After several unpleasant shopping experiences, Xiao Wang not only compares the cost-performance of products but also weighs the logistics, after-sales, and other service capabilities of merchants.
**When young people become savvy, pure low prices are no longer enough to attract them. Every link in the consumption chain, such as consumption experience, delivery time, and after-sales service, has become an important reference for their consumption decisions.**
During the epidemic last year, many users encountered problems such as delayed delivery, frequent stockouts, and inability to return or exchange goods, raising their requirements for logistics and after-sales service capabilities.
According to Nandu's survey, 43.1% of consumers' main demand during this year's 618 promotion was fast delivery, 27% hoped for on-time delivery, and 17.47% hoped for next-day delivery.
Consumers' demands for logistics and after-sales service capabilities have also forced e-commerce platforms to change in supply chain, logistics capabilities, and service efficiency—the era of pure competition on subsidies and prices has ended. Only with high cost-performance and strong full-chain service capabilities can they please the younger generation of consumers.
Now, many e-commerce platforms and merchants have upgraded their supply chain, logistics, and after-sales service capabilities, with a significant increase in the proportion of same-day and next-day delivery. For consumers, it may just mean that the time to receive goods is shortened by ten to twenty-plus hours, but behind it is the optimization and improvement of algorithms, stocking plans, and inventory turnover efficiency.
Door-to-door return and exchange place higher demands on the service capabilities of platforms and merchants, and they have also experimented with various methods to improve the return and exchange experience. Recently, Vipshop and SF Express's door-to-door return and exchange service has been widely discussed. Some say it has pushed e-commerce towards service, raising logistics costs. Others say this is the consumer-centric development model.
After experiencing good consumption services, young people have become demanding about full-chain service capabilities.
Under the new consumption philosophy, they have become "meticulously frugal," hoping that every penny spent on shopping is worth it or even more than worth it. They not only want to buy high-quality goods at lower prices but also enjoy better services.
This poses challenges for the retail industry, but also hides opportunities.
**The Retail Industry Is Worth Redoing**
When young people master the art of budgeting, the retail industry, which previously showed a trend of polarization, is quietly changing.
Previously, whether channel or brand, they either focused on the mid-to-high-end market or served the sinking market, relaxing quality standards and keeping prices as low as possible. But now, this approach is no longer favored by young people.
Reviewing consumption data from the past six months, we find that retail channels and consumer brands that were previously overlooked are making a comeback, which is an unexpected change for many.
**Outlets are regaining popularity.** During this year's May Day holiday, 15 Chuangshou Outlets across the country welcomed nearly 1.8 million visitors in five days, with total sales exceeding 410 million yuan. On May 1st, Shanghai Qingpu Bailian Outlet's sales set a record high since its opening 17 years ago. Vipshop, known as the online outlet, is also gaining popularity. According to financial reports, in the first quarter of this year, Vipshop's GMV increased by 14% year-on-year. It is revealed that discounted big-brand women's and men's wear were the main drivers of its first-quarter performance growth. Their essence is the same: they align with the current consumption trend of young people's changing perception of "low prices."
**In terms of consumer brands, domestic brands have seen significant sales growth.** During this year's 618, Huawei, Xiaomi, Gree, Midea, Anta, Hongxing Erke, Guyu, Huaxizi, Winona, etc., all experienced double-digit or even doubled growth, changing the past where international brands dominated 618.
The common trend behind these changes is that good prices and good products are welcomed. Young people are still pursuing a quality life, but they have learned to budget. Consumer brands and retail channels that can meet their needs have gained new growth.
This is a major turning point for the retail industry.
Over the past decade, consumer brands and retail channels targeting young people have been developing towards consumption upgrading. They create an atmosphere of high-quality life and continuously raise young people's spending limits. When young people return to rationality, cost-performance has become an important consideration.
Young people's pursuit of cost-performance is not consumption downgrading, but compared to extravagant irrational consumption, high cost-performance consumption is about spending money where it's worth it, not wasting a single cent.
This is the stable appearance of the world after the desires stimulated by rapid economic growth have receded.
**Young people have finally understood that pragmatism and rationality are the most real life. Low price is not purely a numerical low price, but a full-chain good price on good products and services.**
Under this consumption concept, all consumer brands and retail channels are worth redoing while balancing cost-performance and quality. This is not only a new growth opportunity but also the other side of the retail industry after the bubble recedes.


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