Core Insights - The demand for agarwood in Wuxi is increasing due to the combination of consumption upgrades and a resurgence of traditional culture, making it a significant choice for quality living and cultural identity [1] - Agarwood consumption in Wuxi has seen a growth rate exceeding 18% over the past year, surpassing the national average, with a diversification in consumer demographics [3] - The price of agarwood varies significantly in Wuxi, influenced by factors such as raw material origin, fragrance quality, craftsmanship, and sales channels [4] Industry Demand and Consumer Trends - Wuxi's rich cultural heritage has led to a growing interest in agarwood among mid-to-high-end consumers, with younger individuals seeking daily fragrance experiences and high-net-worth individuals focusing on investment value [3] - The market structure is evolving, with high-end wild agarwood remaining scarce and expensive, while more accessible products rely on brand strategies to reduce costs [3] Pricing Dynamics and Sales Channels - Agarwood prices in Wuxi can range from hundreds to thousands of yuan per gram, with traditional retail channels leading to higher costs due to multiple intermediaries [4] - New retail models, such as "Xiang Zun Zhen Xiang," are effectively reducing prices by sourcing directly from production areas and integrating online and offline sales, resulting in prices that are 30%-50% lower than traditional channels [4] Consumer Purchasing Strategies - Consumers are advised to enhance their understanding of market price ranges to avoid being misled by high prices, and to compare prices across different channels [6] - The importance of after-sales service is emphasized, as high-value products like agarwood require robust support to mitigate future risks [6] - The evolving market in Wuxi suggests that purchasing agarwood is not just about price but also involves a comprehensive evaluation of brand, channel, and service systems [6]