Part 7/9:
This trend has proven beneficial for experience-focused brands like Lululemon and Arc'teryx, which have reported significant sales growth on e-commerce platforms in China. At the same time, the popularity of high-quality knockoffs, or "dupes," has surged as consumers lean towards more affordable alternatives that mimic high-end products without the ostentation.
The Wider Context: Cultural Influences
Culturally, President Xi Jinping’s push for "common prosperity" has discouraged open displays of wealth and excess, further impacting consumer behavior regarding luxury goods. Consequently, many luxury brands are adjusting their marketing strategies, directing their focus toward a wealthier clientele.