Luxury Goods Are Weakening In China

Li Jie, visiting director of Shanghai Jiao Tong University's luxury brand research center and a visiting professor of Columbia University, who has long been engaged in luxury brand research, says, "rather than slowing the consumption of luxury goods in the Chinese market, it is better to say that the Chinese luxury market has been divided."

"While the growth of some luxury goods is slowing down, other brands of luxury goods have maintained a rapid growth in the Chinese market."

Li Jie, who was taking part in the luxury market activities in Zurich, Switzerland, was interviewed by the Morning Post reporter's telephone interview.

Li Jie pointed out that in the case of slowing economic growth in China, short-term irrational and extrinsic luxury consumption will be restrained.

The comprehensive luxury market will continue to show a long-term growth trend.

This differentiation is not only caused by the decline of economic growth, but also closely related to the change of consumers' consumption concept. The change of economic environment only accelerates the differentiation.

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Brand has always been stratified and graded, from the entry-level, the mainstream to the majesty and the top. Different levels of luxury goods have different consumer groups, and the brand's own development strategy and value pursuit also have differences.

Li Jie believes that as a top luxury brand, it will not be produced in large quantities because of short-term demand expansion, nor will it change the global strategy because of the increasing demand of a particular market.

Li Jie cited examples of Swatch, including Swatch, Hermes, and Gaggenau, "though" LV "was a synonym for luxury in China a few years ago, more and more people are now pursuing it.

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"If we pay attention to the consumption trend of the high-end consumers, we will find that the external conspicuous consumption is turning to the low-key luxury consumption, and the group consumption of homomorphic consumption is changing to the niche personalized consumption. This will undoubtedly increase the difficulty of brand projection to different levels of customers for the four luxury brands."

Li Jie said that some luxury brands have realized this change, such as Louis Vuitton has begun to launch customized services in China.

It also refers to a limited Chinese calendar published by Po Po in early September in Lake Kunming, Zurich: "it combines the twelve Chinese zodiac and heavenly stems and Earthly Branches in modern timepieces."

In addition to the above changes in luxury brands, Li Jie believes that China's luxury market will develop from a simple external dress to a comprehensive direction, including luxury goods such as home, which still have considerable market space in China.