Because the rich needs to spend money to move capital around. Rich people not spending money is actually a bad thing. Infact if they spend money like water its even better.
During prosperous times, people have money to enjoy themselves. During bad times they cut back on discretionary spending. Luxury spending is the canary in the mines, it sells you the state of the consumers and the economy.
@@oceanwave4502eu and japans strength is in high value added engineered products. This is a niche china cant compete in since they lack the technical knowledge buildup of those firms. China couldn’t even make the ball in a pen until a couple of years ago, something europe figured out 100 years ago. It’s laughable to think they could take high valued added sectors away from the eu.
Luxury goods are excessive sure, but most kinds of commerce is. Why buy clothing or furniture for that matter? Keep your economy agrarian if you’re so pragmatic. And what makes this year so significantly different from the last? Did all Chinese become like buddha or is it more likely that the economy is shit?
Yes Chinese have lost half their wealth and become more confident. So confident that they’ve stopped spending money on everything except food. Confidence!
It’s mostly lack of confidence in the economy due to housing market. This being the cause is extremely bullish going forward. Sentiment is bad *and* less money is now needed to buy housing, leaving more for all other businesses. Hard to imagine a more positive setup.
Except that (if only sometimes !) they can represent Higher-Quality than basic-versions of goods ! Whether the extra-quality justifies the much-higher price, well that's surely up to the buyer ? Would you only ever buy generic-labels at the supermarket, or does branding sometimes mean a better product ?
Sure you have. Lol. Asians cutting luxury brands out of their purchasing habits? Yeah right. Only when they cant afford them or their country is collapsing.
Of course in 2023 and 2024, the Chinese have virtually switched from buying foreign vehicle brands such as Volkswagen, Mercedes, BMW, etc. to local brands. There is huge amount of savings!
This is a bit weird. Stimulus for the economy is mainly when the people/economy is suffering. Luxury spending is the last thing on anyone mind in such a situation
Here's what happened - number of billionaires increased in every country except China. Number of billionaires reduce din China by about 100 count. But then the median income of household increased by more than 5%. What does this mean? China is pushing for reduction in economic inequality, Gini co-efficient is improving. China is aiming for Common prosperity, it is CPC's stated goal to bolster social equality and economic equity. Get ready for more middle income people but less billionaires. Did you notice how housing prices are being reduced? Every food/grocery/healthcare/education/travel is very affordable. There won't ever be surge in demand for top-priced luxury goods. But there will be way more people buying home appliances, EV's, going for vacations, doing higher studies.
your house prices weren't reduced, they collapsed 40% in a year after one of your biggest real estate contractors Evergrande went Bankrupt, and with 70% of peoples net worth being in property lol. Good luck. This year they are gonna drop another 10-20%. Your youth unemployment is hitting 50%, what higher studies lol. Your stock market crashed last year and your country released a $1+ Trillion stimulus package that is failing already. China has become poor in a few years and the reality is your people can't afford to spend on luxury goods any more. Good. Karma for covid.
@@user-jy2ci5ox9v L.A dont even have water to stop fires and you looking at others... over 60% of americans dont have extra 200$ for emergency and most die at home due no money for hospitals... the most rich country has a 30% homeless rise year on year my God, No wonder American are considered the most ignorant when all their talking points are from CIA and corporate media channels... yeah bruh, keep dreaming the American dream, China is collapsing like Russia has been collapsing since 2022 and Trump will maake America great again with ELON, Zuckerberg, Bezos and all other billionaires...😂😂😂😂
What you're describing is deflation. People not buying because of lack of demand or anticipation of further price reductions. It produces a vicious cycle of businesses going bust, employees being laid off, more worries of what the future may hold, and even less economic activity. Japan got a big dose of deflation that took decades to repair. Welcome to deflationary hell, where everybody suffers, and not just the rich.
i find it hard to feel anything for someone reducing their luxury purchases 🙂 if anything they're lucky they have the crumple zone of not buying luxury to fall back on. for me buying a premade frozen food feels like an small indulgence
Last 20 yrs prices were pretty stable in terms of yearly hikes but since 2021 the price hikes been insane & the luxury products like LV & Chanel been complained a lot abt their quality .. so that’s the reason spending is not great in countries that don’t give duty free like UK or China that has high duty on imported goods
Luxurious are elastic demands. People can give up elastic demands when they are having financial difficulties. However, inelastic demands are needed anyway. For example, you can give up buying a lucrative handbags, but you can’t give up buying foods you eat everyday.
I think they are cutting back because they are sensible and they have a better worldview of what lies ahead. I am not entirely sure what view citizens of other countries are being shown that they can keep spending money they do not have while saddling ever growing piles of personal household debt.
Being thrifty. Minimalism. Travel. The new status symbols. Not things that lose value and can be easily lost or stolen. Or yet, make you a target for the wrong reasons.
Why spend on luxury goods from countries that slapped huge tariffs on your products? China have 1.4B people but they can think as 1. The rich will buy in Japan? The airport customs will thank you for the tip.
Good for them! It means chinese consumers are smart and dont want to be duped by these "luxury brands" which is all in the name nad has same quality with cheaper brands
It's game over for foreign luxury brands... Most Chinese consumers are struggling to get by. Only the super-rich still splurge on designer labels. In fact, I'm not sure multinationals still need to hire these useless consultants.
Are U kidding anyone with the collapse of the housing market everyone is going to be poor. This happens in everypart of the world U should know that so any spare money to buy Luxury stuff you tell me!
The "expert" fron Bain clearly does not know the chinese market at all, probably because she can not read mandarin. there are plenty reports locally which point out the main reasons for the decline. first of all, the luxury products market they are talking about is the foreign brands (like Gucci, LV and etc.) in China. That's where they get the sales figure from. This number itself is incomplete because after civid was over, Chinese tourists have traveled to Japan and bought a lot of luxury goods there due to the cheap yen. 2nd, the chinese cosmetic and high end fashion products have improved substantially, and they are replacing foreign brands. since they are much cheaper, even if their sales are included, total luxury consumption is down too. And all this info is published in chinese media, has the Bain "expert" read them, I DON'T THINK SO, but I have! 😂😂😂😂😂
Waste of money to spend on these luxury goods. They are no different from other brands, just the logo. Furthermore, when people have much less purchasing power, luxury goods is the last in mind
Foreigners don’t understand Chinese around the world. Chinese are generally frugal and careful people. The economy in Asia in general is not great. It is not a time to blow monies. Why spent monies on luxury ? Spend on value for monies products.
They are realizing it's a scam
why spend on luxury goods? the very definition of luxury goods means it is not a effective use of one's money. wasteful basically.
Because the rich needs to spend money to move capital around. Rich people not spending money is actually a bad thing. Infact if they spend money like water its even better.
During prosperous times, people have money to enjoy themselves. During bad times they cut back on discretionary spending. Luxury spending is the canary in the mines, it sells you the state of the consumers and the economy.
Luxurious products are EU's strength. I guess this reduction of luxury spending plus Trump's tariff on EU would seal EU fate to deindustrialization.
@@oceanwave4502eu and japans strength is in high value added engineered products. This is a niche china cant compete in since they lack the technical knowledge buildup of those firms. China couldn’t even make the ball in a pen until a couple of years ago, something europe figured out 100 years ago. It’s laughable to think they could take high valued added sectors away from the eu.
Luxury goods are excessive sure, but most kinds of commerce is. Why buy clothing or furniture for that matter? Keep your economy agrarian if you’re so pragmatic. And what makes this year so significantly different from the last? Did all Chinese become like buddha or is it more likely that the economy is shit?
Foreign luxury brands era is gone .
It shows that Chinese become more pragmatic and confident that they don’t need over priced luxury goods to show off.
Agree
Yes Chinese have lost half their wealth and become more confident. So confident that they’ve stopped spending money on everything except food. Confidence!
It’s mostly lack of confidence in the economy due to housing market. This being the cause is extremely bullish going forward.
Sentiment is bad *and* less money is now needed to buy housing, leaving more for all other businesses. Hard to imagine a more positive setup.
Demographics. That’s the real issue still present going forward there
yea, right... or maybe it's because they're broke now. even the government begging people to buy stocks now lol
luxury goods are essentially status symbols. slowing sales means the value of the 'status' the product delivers is dwindling.
Nothing wrong with that. Luxury brands are just names.
Except that (if only sometimes !) they can represent Higher-Quality than basic-versions of goods ! Whether the extra-quality justifies the much-higher price, well that's surely up to the buyer ? Would you only ever buy generic-labels at the supermarket, or does branding sometimes mean a better product ?
@@richardincm you don't have to go to Gucci to get a high quality bag. The same quality bags would definitely be available at 25% of that price
@@richardincm higher price doesnt automatically means better quality. Luxury goods by definition means high price. No mention of quality.
@@crazyqqq3 I never said that it DID mean higher-quality, only that it CAN sometimes mean that.
@ And cheap bags can also mean much-lower quality, too. Re-read what I said, in my first post, "can" and "if only sometimes".
Anecdotally, many are buying it in Japan. Same thing for a lot cheaper.
In my opinion that's a good thing. Luxury products prices are overpriced
⛔Why? to make LVMH Bernard Arnault and other 1% oligarch wealthier and you poorer!
I have a few million and I have certainly cut virtually all luxury. Total waste of $.
Few million ain’t enough nowadays
Sure you have. Lol. Asians cutting luxury brands out of their purchasing habits? Yeah right. Only when they cant afford them or their country is collapsing.
Of course in 2023 and 2024, the Chinese have virtually switched from buying foreign vehicle brands such as Volkswagen, Mercedes, BMW, etc. to local brands. There is huge amount of savings!
Not surprised...thank you derisking or decoupling
This is a bit weird. Stimulus for the economy is mainly when the people/economy is suffering. Luxury spending is the last thing on anyone mind in such a situation
Here's what happened - number of billionaires increased in every country except China. Number of billionaires reduce din China by about 100 count. But then the median income of household increased by more than 5%.
What does this mean? China is pushing for reduction in economic inequality, Gini co-efficient is improving. China is aiming for Common prosperity, it is CPC's stated goal to bolster social equality and economic equity. Get ready for more middle income people but less billionaires.
Did you notice how housing prices are being reduced? Every food/grocery/healthcare/education/travel is very affordable. There won't ever be surge in demand for top-priced luxury goods. But there will be way more people buying home appliances, EV's, going for vacations, doing higher studies.
your house prices weren't reduced, they collapsed 40% in a year after one of your biggest real estate contractors Evergrande went Bankrupt, and with 70% of peoples net worth being in property lol. Good luck. This year they are gonna drop another 10-20%.
Your youth unemployment is hitting 50%, what higher studies lol.
Your stock market crashed last year and your country released a $1+ Trillion stimulus package that is failing already.
China has become poor in a few years and the reality is your people can't afford to spend on luxury goods any more. Good.
Karma for covid.
@@user-jy2ci5ox9v L.A dont even have water to stop fires and you looking at others... over 60% of americans dont have extra 200$ for emergency and most die at home due no money for hospitals... the most rich country has a 30% homeless rise year on year my God, No wonder American are considered the most ignorant when all their talking points are from CIA and corporate media channels... yeah bruh, keep dreaming the American dream, China is collapsing like Russia has been collapsing since 2022 and Trump will maake America great again with ELON, Zuckerberg, Bezos and all other billionaires...😂😂😂😂
What you're describing is deflation. People not buying because of lack of demand or anticipation of further price reductions. It produces a vicious cycle of businesses going bust, employees being laid off, more worries of what the future may hold, and even less economic activity. Japan got a big dose of deflation that took decades to repair. Welcome to deflationary hell, where everybody suffers, and not just the rich.
I don't feel as much of a cutback as it is returning to a more normal and sustainable lifestyle within our means.
i find it hard to feel anything for someone reducing their luxury purchases 🙂 if anything they're lucky they have the crumple zone of not buying luxury to fall back on.
for me buying a premade frozen food feels like an small indulgence
People slowing realizing paying $100 for a t shirt that cost $5 to make is stupid. LOL
Last 20 yrs prices were pretty stable in terms of yearly hikes but since 2021 the price hikes been insane & the luxury products like LV & Chanel been complained a lot abt their quality .. so that’s the reason spending is not great in countries that don’t give duty free like UK or China that has high duty on imported goods
luxury good is really stupidity tax
Luxurious are elastic demands. People can give up elastic demands when they are having financial difficulties. However, inelastic demands are needed anyway.
For example, you can give up buying a lucrative handbags, but you can’t give up buying foods you eat everyday.
That is good. Why Spend on something that is Only a name and advertising free by carrying it around?😁
Huh?! Yeah everyone even in the US wised up that paying Thousands of $$$ for a bag was a huge waste of money.
The Adaxum project has some strong points. Took a position while the presale is still open.
Why would you buy stuff from Tariffing countries?
Why would you buy stuff with tariff?
Because that means Status 😅
Why China want to waste money on foreign Luxury items when they all are so unfriendly to China. They deserve to be ban too.
What a appealing thumbnail. Who is that beauty in blue?
I think they are cutting back because they are sensible and they have a better worldview of what lies ahead. I am not entirely sure what view citizens of other countries are being shown that they can keep spending money they do not have while saddling ever growing piles of personal household debt.
Being thrifty. Minimalism. Travel. The new status symbols. Not things that lose value and can be easily lost or stolen. Or yet, make you a target for the wrong reasons.
luxury industry should focus on India now, they are the real superpower in 21st century
Why spend on luxury goods from countries that slapped huge tariffs on your products? China have 1.4B people but they can think as 1. The rich will buy in Japan? The airport customs will thank you for the tip.
Good for them! It means chinese consumers are smart and dont want to be duped by these "luxury brands" which is all in the name nad has same quality with cheaper brands
You can only have so much luxury bags.
It's game over for foreign luxury brands... Most Chinese consumers are struggling to get by. Only the super-rich still splurge on designer labels. In fact, I'm not sure multinationals still need to hire these useless consultants.
Adaxum’s presale is selling out quickly. Might be worth a closer look for those interested.
I bought my first XAI62V last month and I’m already in the green
ADX ADAXUM: early stage, huge potential.
ADX Adaxum is a solid bet.
Chinese economy is going down down and down. Now India will be the next economic super power house 💪🏽💪🏽🙏🏽
⛔Why? to make LVMH Bernard Arnault and other 1% oligarch wealthier and you poorer!
If you worry about your job security and your property value plummeted, would you spend on luxury goods ?
XAI62V is shaping up to be a powerhouse in the space
Feeling cautiously optimistic about Adaxum’s potential. Got my ADX tokens today.
The combination of DeFi and E-commerce makes Adaxum stand out.
Kudos to Chinese
Are U kidding anyone with the collapse of the housing market everyone is going to be poor. This happens in everypart of the world U should know that so any spare money to buy Luxury stuff you tell me!
Adaxum leads DeFi’s next evolution.
XAI62V is going to turn a lot of heads this year
Took a closer look at Adaxum and decided to take a small position in the presale.
Adaxum is still early, but it has the potential to grow into something significant.
Hey, check this one out: Adaxum’s presale could be a sleeper hit.
Glad I got into Adaxum during the presale. The project has some promising elements.
This presale is moving fast. Adaxum is attracting all the right attention.
Adaxum’s presale offers solid bonuses. Don’t sleep on this opportunity!
They saving up for the new electric car market
Luxury especially from west is now seen as inferior and not worth the bucks lol.
Better buy cheaper yet more quality item
Adaxum’s presale demand keeps climbing.
Looks like from the comments if you want to be rich then live somewhere else other than China
Such a dumb question, laughable
Presales like Adaxum don’t come often. Don’t sleep on this one!
It’s hard to believe how early we are with XAI62V. This is the ground floor
XAI62V to $100? It's a real possibility
The "expert" fron Bain clearly does not know the chinese market at all, probably because she can not read mandarin. there are plenty reports locally which point out the main reasons for the decline.
first of all, the luxury products market they are talking about is the foreign brands (like Gucci, LV and etc.) in China. That's where they get the sales figure from.
This number itself is incomplete because after civid was over, Chinese tourists have traveled to Japan and bought a lot of luxury goods there due to the cheap yen.
2nd, the chinese cosmetic and high end fashion products have improved substantially, and they are replacing foreign brands. since they are much cheaper, even if their sales are included, total luxury consumption is down too.
And all this info is published in chinese media, has the Bain "expert" read them, I DON'T THINK SO, but I have!
😂😂😂😂😂
Because Chinese are getting smarter 😂
It's finished
XAI62V’s rally is far from over. The real action is just beginning
XAI62V is going to make a lot of people rich
Excited for Adaxum’s next steps.
It's more like the chinese are boycotting western luxury brands and supporting their local brands.
I’m watching XAI62V like a hawk, ready for the breakout
好日子还在后面😂
XAI62V will be the next coin to hit $10B market cap. Watch and learn
Adaxum’s DeFi potential feels real.
Saving money ! Americans need to learn how to do this
Wise people of China. They know where not to waste money!😅
Waste of money to spend on these luxury goods. They are no different from other brands, just the logo. Furthermore, when people have much less purchasing power, luxury goods is the last in mind
Took a chance on Adaxum during the presale. Let’s see how it plays out.
ADX Adaxum rewards early adopters generously.
Happy with my decision to join the Adaxum presale. Let’s see how it performs in the long run.
Foreigners don’t understand Chinese around the world.
Chinese are generally frugal and careful people.
The economy in Asia in general is not great.
It is not a time to blow monies.
Why spent monies on luxury ?
Spend on value for monies products.
But chinese retail sales data and other econ data said china economy is improving. 🎉 China data and company earning result diverging again.
ADAXUM has a unique angle with its E-commerce focus. Glad I got in during the presale.
Keeping an eye on Adaxum. The project seems promising enough to have potential upside.
Took a measured position in Adaxum. Hoping the project delivers on its promises.
Adaxum stands out from competitors.
The Adaxum’s presale is flying under the radar, but I’m not missing out.
Hi everyone, Adaxum is delivering on its promises so far-presale bonuses are great.
Happy I got in early with ADX.
The Adaxum ADX tokenomics look reasonable, and the presale seems like a good entry point.
Adaxum has strong fundamentals.
ADX Adaxum is worth a look if you’re exploring new projects this year.
The Adaxum ADX presale is progressing well. Glad I got my tokens before it’s too late.
Adaxum is still under the radar, but it could gain momentum soon.
Joined the Adaxum presale early. Hoping it turns out to be a good long-term move.
Hi everyone, Adaxum seems like a project with potential. I’m keeping an eye on it after joining the presale.
Adaxum could dominate the E-commerce-DeFi space soon.
they remind me of Japan during the 1980s to 1990s. got carried away with too much funny money and then imploded.
E-commerce and Adaxum ADX make sense.
Adaxum ADX is selling out fast.
Glad I got ADX early. Adaxum ftw
Adaxum: The future is here.
ADX Adaxum is the next big thing.