The Secret of Luxury Slowdowns

I was driving and burst into tears with ironic laughing while seeing the 2 sentences floating up from WeChat:

“We can’t buy in products from long tail brands, unless price is too low to be logical”;

“There is nothing impossible about low price on big brands – you have to believe in the power of 卷 (Juan3) from Chinese people” .

My friend, a high-ranking official at a top Chinese platform, bluntly stated that brands have no price floor, regardless of their magnitude. This revelation, both ironic and unsettling, made me realise that luxury slowdowns are heavily linked to the Chinese market’s deceleration. Given China’s crucial role in the luxury sector, this realisation is deeply concerning.

卷 (Juan3) stands as the linchpin directly linking the elusive secret of luxury slowdowns, signalling an unhealthy degree of price competition that can precipitate market stagnation.

I’m not here to criticise the huge market who plays even heavier role than it seems. Rather, I aim to unveil the hidden chamber of this economic phenomenon to discover the remedy.

After I was dissecting the intricacies of China’s ecommerce landscape in the Linkedin article a few years ago, which was reposted by many industry professionals like YOOX NET-A-PORTER group and even Alibaba Group at the time, I’ve ultimately made the decision to pen this article for the “Secret of Luxury Slowdowns” after reading numerous pieces on this topic from The Business of Fashion.