TRAVEL, NOT BAGS
Post-pandemic, there has also been a shift in consumer tastes and priorities.
Near Shanghai’s Wukang Mansion, a landmark regularly swarmed by influencers – a woman surnamed Liu said that while she occasionally bought designer items, she would never go line up for a bag.
“I like travelling a bit more,” she said. “I’m not so crazy about brand names.”
That’s a trend evident in a report on high net-worth individuals’ preferences compiled by research firm Hurun.
“There is a significant shift towards experiential luxury rather than luxury goods,” said Nan of Jing Daily.
During the pandemic, the absence of high-spending Chinese tourists hit Europe’s luxury goods sector hard.
Some of that spending transferred to China, as global brands focused on organising events and creating goods more tailored to their biggest market.
Euromonitor International’s Roberts said the outlook for the luxury market remained “challenging” and that brands should “err on the side of caution”.
“That said, China is still home to over 2.5 million people with a net wealth of over US$1 million,” she added.
On a sunny day in central Shanghai, passers-by clutched their designer handbags as they went shopping.
“Some people say that if you buy classic styles, they may appreciate in value and it can be an investment,” said a 28-year-old media worker named Winnie carrying a Dior bag.
“But for me … it’s not an investment. As long as I like it, it’s fine.”
“I think China is still in a period where (European) brands are important,” Jennifer Sheng, a woman in her 60s, told AFP.
In her eyes, the allure of owning designer products remained strong.
“Twenty years, thirty years ago, we didn’t have anything,” Sheng said.
“We want to have these things.”
