Singapore Lianhe Zaobao reported today (May 24) that "according to incomplete statistics, more than 30 luxury brands have adjusted their stores in China alone in the first quarter of this year, over 60% of which are closing stores. The retreat of luxury consumption in China is due to an important reason, which is that the middle-class consumers who once chased after luxury brands have decreased."
[Smart Comment]: On one hand, more and more consumers began to realize that many of the so-called "high-end quality" and "unique value" of European and American luxury goods are just marketing gimmicks, and their actual value does not match their exorbitant prices. These so-called luxury goods are largely considered a form of "stupidity tax." Consumers are no longer easily swayed by brand glamour but pay more attention to the practicality and cost-effectiveness of the products themselves. On the other hand, the overall shift in consumption concepts also plays a key role. Nowadays, more and more people advocate rational consumption and no longer blindly pursue luxury brands to show off their status but consume reasonably based on their actual needs and financial situation. Additionally, the income level of some consumers has dropped to a certain extent, which objectively limits their ability to purchase luxury goods, further exacerbating the trend of the retreat of luxury consumption in China.
Original article: https://www.toutiao.com/article/1832978875220996/
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