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“I bought an LV bag for 12,000 RMB and now it’s only worth 4,000 RMB,” shared a disenchanted buyer. This sentiment resonates with the experiences of many, suggesting consumers are weary of falling into the ‘luxury trap.’
The Future of Luxury in China
Beyond the immediate economic concerns, experts are eyeing long-term challenges posed by demographic shifts in China. An aging population, coupled with lower birth rates, raises questions about the sustainability of the luxury market moving forward. As disposable incomes falter, the target demographic becomes increasingly frugal with their spending.