(NADS) - Zheng Jiewen, a 23-year-old woman living in Guangzhou, had to give up her favorite luxury items when her income halved in just two years. Zheng used to earn more than $4,200 a month as a model, but after her company went into trouble, her income was severely affected.
To adapt to her new standard of living, Zheng stopped shopping at high-end brands like Louis Vuitton, Chanel, and Prada. Instead, she and her friends turned to "pingti" products — cheaper knockoffs.
Pingti products are not exact replicas of branded goods, but rather “inspired by the original design” and come in a variety of colors and materials. The trend is growing, especially as consumer confidence in China is at a record low.
Searches for pingti products on social media have tripled, said Laurel Gu, director of market research firm Mintel in Shanghai. Chinese consumers, once the world’s biggest spenders on luxury goods, are now being forced to change their habits.
Pingti products are often significantly cheaper than the original. For example, Lululemon’s Align yoga pants cost $106, while knockoffs cost as little as $5. Luxury conglomerate LVMH saw its revenue in the Asia region (excluding Japan) fall 10% in the first half of the year compared to the previous year. The pingti trend is contributing to a decline in consumer spending and retail sales.
Xinxin, a primary school teacher in Chongqing, said she used to love Estée Lauder serums. However, after her salary was cut by 20% this year, she switched to pingti products. Xinxin found a serum with the same ingredients as the genuine product for only $14, while the genuine serum costs $72.
Both Xinxin and Zheng feel lucky to still have jobs, while China's unemployment rate for 18-24 year olds (excluding students) rose to 18.8% in August.
The current consumer slowdown is contributing to poor economic indicators, with many investment banks forecasting China's growth could fall below its 5% target.
Source: https://nhiepanhdoisong.vn/genz-trung-quoc-ua-chuong-mua-sam-hang-nhai-de-tiet-kiem-chi-tieu-15181.html
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