Contents
- What is mass market
- Market segments
- Features of mass market
- Promotion of goods in mass market
- Pros and cons of mass market for business
What is mass market
Mass market is a segment of the market where goods are produced and sold for a wide range of consumers. This segment includes well-known brands in the fields of clothing, footwear, toys, accessories, jewelry, as well as household and electronic appliances. Examples of such brands include Zola, Gloria Jeans, Scarlett, Xiaomi, Sunlight, Lego, and many others. The main goal of mass market is to meet the needs of a large number of buyers.
Mass market is one of the most profitable segments of the global market, targeting customers with average income levels. Attracting consumers is achieved through affordable prices, active advertising campaigns, and a wide distribution network. The quality of products in this segment is usually rated as average, which also affects its accessibility.
For example, the brand Sunlight, specializing in jewelry in the mass market, has more than 400 stores in 156 cities across Russia. The concept of mass market began to develop in the 19th century, when the rise in income among the middle class and improvement in living standards led to an increase in demand for goods and services. The development of railroads and telegraphs opened new horizons for delivering and advertising goods over long distances.
Market segments
Mass market includes goods in the mid-price category. For example, in September 2022, the average receipt in a clothing store was 2828 rubles. Anything below this price and quality falls into the economy segment. The main characteristics of the economy segment are basic functionality, minimalist design, and low price. The audience of this segment consists of customers for whom price is more important than quality. The economy segment often features imitation products, such as the Russian cookie "Tri-O," which looks and is named similarly to the popular Oreo cookie.
On the other end of the spectrum is the premium segment, which includes higher quality and more expensive goods. These products are characterized by original design and the use of high-quality materials, creating a sense of exclusivity for the customer. The price of such products is above average, but not inaccessible. For example, one can purchase a premium product through installment payments, making it more accessible for the middle class.
Additionally, there is a luxury segment that offers goods for the elite, representing luxury items produced in limited quantities. This is a segment where price does not matter, and buyers expect exceptionally high quality and uniqueness. For example, a small bottle of face serum can cost over 100,000 rubles.
Features of mass market
Within the mass market, three levels can be distinguished: lower, middle, and upper. The lower level includes budget goods that are closer to the economy class and targets teenagers and impulsive buyers. The middle and upper levels offer higher quality and more expensive goods that attract consumers with stable income, who pay attention to the prestige of the product.
Some brands, such as O’stin, present their products at several levels, including subsidiary brands for cheaper and lower-quality goods. Competition in the mass market is very high, and the segment continues to expand thanks to developed distribution channels and numerous distributors.
Promotion of goods in mass market
The sale of goods in the mass market is conducted through retailers and official stores, including online platforms and marketplaces. For manufacturers, it is especially beneficial to use marketplaces, as they can take advantage of already established platforms without facing intense competition. Some companies prefer to work on a franchising model, allowing them to quickly expand their network of stores using well-known names.
For example, a household appliance manufacturer may invite entrepreneurs for collaboration. Success in this business depends on choosing a favorable location for the store. Companies also implement loyalty programs to attract customers, offering bonus cards and promotions. The sports goods store "Sportmaster" regularly holds promotions, offering customers accumulating bonuses, which stimulates purchases and increases sales volumes.
Pros and cons of mass market for business
The advantages of mass market include:
- A wide target audience and high potential for business growth.
- Affordable prices and acceptable quality, ensuring active demand.
- No need to spend money on advertising campaigns when franchising.
However, there are also disadvantages:
- High competition requires constant improvement of quality and regular promotions.
- Uniformity of the assortment can lead to loss of customers looking for original products.