• Latest
  • Trending
  • All
  • News
  • Business
  • Politics
  • Science
  • World
  • Lifestyle
  • Tech
Luxury sneakers may be a step too far for cash-strapped Gen Z

Luxury sneakers may be a step too far for cash-strapped Gen Z

August 18, 2022
The Future of Fantasy Sports: Emerging Trends and Innovations to Watch Out For

The Future of Fantasy Sports: Emerging Trends and Innovations to Watch Out For

October 4, 2023
Understanding Common Blood Tests and What They Mean

Understanding Common Blood Tests and What They Mean

September 25, 2023
Unlocking Success in the IRDA Exam: The Role of IRDA Mock Tests

Unlocking Success in the IRDA Exam: The Role of IRDA Mock Tests

September 19, 2023

Build an App That’ll Create an Engaging Experience for Your Customers

September 15, 2023
Best horror movies to watch on Disney+ Hotstar

Best horror movies to watch on Disney+ Hotstar

August 31, 2023
STEPPING INTO THE SPOTLIGHT: SWISS BEAUTY MAKEUP FOR RED CARPET-INSPIRED LOOKS

STEPPING INTO THE SPOTLIGHT: SWISS BEAUTY MAKEUP FOR RED CARPET-INSPIRED LOOKS

August 29, 2023
FROM BOARDROOM TO CASUAL CHIC OUTFITS: STYLE WITH THE BOMBAY SHIRT COMPANY

FROM BOARDROOM TO CASUAL CHIC OUTFITS: STYLE WITH THE BOMBAY SHIRT COMPANY

August 29, 2023
ELEVATE YOUR STYLE WITH DENIM TOPS FOR WOMEN: A TRENDY WARDROBE ESSENTIAL

ELEVATE YOUR STYLE WITH DENIM TOPS FOR WOMEN: A TRENDY WARDROBE ESSENTIAL

August 29, 2023
Navigating MBA Essay Writing: Pitfalls to Sidestep for Aspiring Candidates

Navigating MBA Essay Writing: Pitfalls to Sidestep for Aspiring Candidates

August 28, 2023
From Classroom to Boardroom: ACCA’s Practical Approach to Accounting Education

From Classroom to Boardroom: ACCA’s Practical Approach to Accounting Education

August 28, 2023
Social Interaction in Online Games: Everything You Should Know

Social Interaction in Online Games: Everything You Should Know

August 21, 2023
Work Smarter, Not Harder: A Guide to Ergonomic Office Setup

Work Smarter, Not Harder: A Guide to Ergonomic Office Setup

August 3, 2023
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Wednesday, October 4, 2023
Asia Posts- Trending Post Of the World
  • Home
  • News
    • All
    • Politics
    • Science
    The Benefits of Using a Professional Apostille Service

    The Benefits of Using a Professional Apostille Service

    Get Your Life Back After A Chicago Golf Cart Accident

    Get Your Life Back After A Chicago Golf Cart Accident

    Billionaire Rinat Akhmetov on Ukraine’s Endurance a Year Into the War

    Billionaire Rinat Akhmetov on Ukraine’s Endurance a Year Into the War

    My Body, My Choice-Why We Need to Support Women’s Reproductive Rights

    My Body, My Choice-Why We Need to Support Women’s Reproductive Rights

    Qatar labour minister migrant workers reforms rights to continue after World Cup

    Qatar labour minister migrant workers reforms rights to continue after World Cup

    Adhdsnap Receives Overwhelmingly Orders across the Globe on New Year’s Eve

    Adhdsnap Receives Overwhelmingly Orders across the Globe on New Year’s Eve

    Yalla Chance Review — Can You Win Great Prizes On This Platform?

    Yalla Chance Review — Can You Win Great Prizes On This Platform?

    How to Get a Green Card in the US

    How to Get a Green Card in the US

    Enhancing Energy Efficiency with Air Pollution Control Systems

    Enhancing Energy Efficiency with Air Pollution Control Systems

    Who’s Who in the US Chamber of Commerce 

    Who’s Who in the US Chamber of Commerce 

    Trending Tags

    • Donald Trump
    • Future of News
    • climate change
    • Market Stories
    • Election Results
    • Flat Earth
  • Tech
    • All
    • Apps
    • Gear
    • Mobile

    Build an App That’ll Create an Engaging Experience for Your Customers

    APK Files and Their Benefits Explained

    APK Files and Their Benefits Explained

    The Most Common Sales Contract Mistakes SaaS Companies Make

    The Most Common Sales Contract Mistakes SaaS Companies Make

    Protect Your Personal Internet Data with Right Plan from the Best Company

    Best Reasons to Get High Speed Internet at Home

    Keeping Up With the Latest Techy TrTends

    Keeping Up With the Latest Techy TrTends

    The Technique of Cybersecurity Risk Management: Protecting Your Business from Threats

    The Technique of Cybersecurity Risk Management: Protecting Your Business from Threats

    Dafabet App – Mobile App Available for Download on iOS and Android in India 2023

    Dafabet App – Mobile App Available for Download on iOS and Android in India 2023

    Ways to Increase Your Conversion Rate on Website Right Now

    Ways to Increase Your Conversion Rate on Website Right Now

    How Hospitals Are Using Technology in 2023

    How Hospitals Are Using Technology in 2023

    5 Uses For 3D Visualization Technology

    5 Uses For 3D Visualization Technology

    Trending Tags

    • Flat Earth
    • Sillicon Valley
    • Mr. Robot
    • MotoGP 2017
    • Golden Globes
    • Future of News
  • Entertainment
    • All
    • Gaming
    • Movie
    • Music
    Best horror movies to watch on Disney+ Hotstar

    Best horror movies to watch on Disney+ Hotstar

    Social Interaction in Online Games: Everything You Should Know

    Social Interaction in Online Games: Everything You Should Know

    How playing online games can be beneficial to kids?

    How playing online games can be beneficial to kids?

    Slot machines online casinos Fairspin: How to play and win

    Slot machines online casinos Fairspin: How to play and win

    EVENT PHOTOGRAPHY

    7 Common Mistakes to Avoid When Hiring an Event Photographer

    Experience the Unique World of Japanese Video Games

    Experience the Unique World of Japanese Video Games

    Xbox Gaming- The Ultimate Entertainment Experience

    Xbox Gaming- The Ultimate Entertainment Experience

    What Is The Easiest Game To Win at a Casino?

    Online Casinos: The Rise of the Modern Casino

    Top 5 Casinos in Kiev (Ukraine) – 2021

    Best online casinos in Australia

    The best games to play when travelling 900 words

    The best games to play when travelling 900 words

  • Lifestyle
    • All
    • Food
    Bandhani Sarees: The Perfect Attire for Weddings and Special Celebrations

    Bandhani Sarees: The Perfect Attire for Weddings and Special Celebrations

    5 Tips For Choosing The Perfect Braided Wig For Your Style

    5 Tips For Choosing The Perfect Braided Wig For Your Style

    PERSONAL TRAINER IN CHIGWELL

    How exercise improves your brain function and productivity? 

    How to Style up Your Designer Lehenga look for Wedding Party

    How to Style up Your Designer Lehenga look for Wedding Party

    How to Make Your Deer Feeder Last Longer

    How to Make Your Deer Feeder Last Longer

    Personal Trainer in Chigwell & Loughton

    How Diet Coaching Can Help You Achieve Your Fitness Goals?

    Water Purifier

    Portable Water Purifier for Clean Water at All Times

    Acrylic Pins

    A Look at the History of Acrylic Pins and Keychains: From Function to Fashion

    5 Mistakes You Can Avoid at a Strip Club

    5 Mistakes You Can Avoid at a Strip Club

    A swimming pool takes centre stage at this tropical modernist architecture in Thailand

    The Benefits of Having a Swimming Pool in Your Backyard

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • climate change
    • Flat Earth
  • Contact Us
No Result
View All Result
Asia Posts- Trending Post Of the World
No Result
View All Result

Luxury sneakers may be a step too far for cash-strapped Gen Z

by Alex John
August 18, 2022
in Asia, Business, News
0
Luxury sneakers may be a step too far for cash-strapped Gen Z
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

[ad_1]

SHANGHAI: From US$300 bucket hats to US$900 sneakers and US$700 T-shirts, the high-flying luxury sector is fretting over the appetite among financially stretched Gen Z consumers for such “aspirational” purchases.

Executives are troubled in particular by a hit to young Chinese shoppers, not only because mainland China has been a major driver of the industry’s growth in recent years, but also because high-end consumers in the world’s second-largest economy are a decade younger than the global average of 38.

Young adults around the world have been “a very strong factor of luxury growth over the past decade”, said Gregory Boutte, chief client and digital officer at Gucci-owner Kering.

Data this week showed China’s economy slowed unexpectedly, prompting a central bank rate cut, while macroeconomic trends are disproportionately impacting the extra funds that those born between 1996 and 2012 might use to enter the world of luxury.

Whereas in North America and Europe, inflation and a rising cost-of-living are hitting discretionary incomes of young consumers especially hard, China’s problem is different.

“In the US, inflation is a huge issue, the major focus of a lot of luxury companies … In China, it’s the youth unemployment rate that’s alarming right now,” Kenneth Chow, principal at consultancy Oliver Wyman said.

Government data for July registers the unemployment rate of China’s urban population aged 16 to 24 at a record 19.9 per cent, exacerbated by the impact of COVID-19 lockdowns and a crackdown on big tech firms that traditionally hired droves of graduates.

“This might be the first time that a lot of young adults (in China) are facing (such an) economic impact, so it will be a testing ground on how these consumers are going to spend on luxury items going forward,” Chow said.

“If a recession happens, then I will 100 per cent buy less or maybe even stop buying altogether,” said US-based luxury lifestyle and travel TikToker Jeffrey Huang, 28, who shares his Louis Vuitton shopping trips and hauls with his 150,000 followers.

A recent Oliver Wyman study showed that some luxury brands are significantly lowering their sales expectations for the Chinese market in response to current conditions, with 80 per cent of executives questioned not expecting a “v-shaped” recovery this year. Oliver Wyman declined to name the brands it surveyed.

Nevertheless, earnings last month from firms including LVMH and Kering painted a picture of resilience in the face of economic headwinds, with luxury players riding a wave of post-pandemic spending by their wealthiest clients.

And big brands have signaled their intention to grow top end sales of US$10,000 handbags and US$5,000 coats rather than focus on attracting new entrants onto the bottom rung of the ladder.

Chanel, Louis Vuitton and Dior have raised prices on high-margin leather goods several times over the past year, with Chanel planning stores dedicated to VIP consumers. 

“As the prices are rising, I’m becoming more and more cautious because I feel like I did do a good amount of spending in the last year,” said Sara Yogi, a 26-year-old San Francisco, California resident, adding that she may hold off buying a US$2,900 Prada bag and one costing US$3,200 from Bottega Veneta which are both on her wish list.

This shift to focus on core luxury consumers also encompasses a cohort of wealthy Gen Z consumers less likely to be impacted by inflation or unemployment.

But the concern is over would-be buyers who were meant to help Gen Z account for a fifth of all spending in the luxury goods sector globally by 2025.

And brands such as Burberry have already noted weakness in sales of sneakers and slides, products Gen Z and millennial consumers have traditionally used as their entrée into the world of luxury brands.

PLAN B FOR GEN Z?

One way for luxury players to continue to attract Gen Z consumers may be to offer aspirational options at entry-level price points that can be worn often, said Yi Kejie, a 26-year-old marketing content manager.

Luxury branded mobile phone cases, earrings, hair clips and perfumes are all popular among her Gen Z peers in China, Yi said, adding: “These are items with the lowest threshold for (them) to have that logo, that icon”.

Some luxury labels, including Balenciaga and Dior, are embracing the metaverse to seed interest with teens and young adults, offering affordable ways for them to kit out their virtual identities on gaming platforms such as Roblox.

Virtual sneakers from brands like Gucci have already proved wildly popular, with a price point of US$17.99.

Whether in the real or virtual world, entry-level products call for high levels of creative investment.

“There is this young crowd of consumers that are entering into the market that requires a lot of creativity at more affordable price points,” said Bain partner Claudia D’Arpizio, adding that not all brands are equipped for this.

There is good news for brands, however.

If they do find the right offering of entry-level products, or if the economic situation of Gen Z consumers improves, the desire for luxury products remains undimmed.

“Young people in China are enthusiastic about luxury products,” Yi said. “Lockdowns, or the temporary unemployment rate won’t change their long-term preferences.”

[ad_2]

RelatedPosts

The Benefits of Using a Professional Apostille Service

Manufacturing Process: Where Are Champion Generators Crafted?

Tips for Saving Money on Laundry: 10 Ways to Cut Costs

(Visited 3 times, 1 visits today)
Tags: Chinaluxury goodsshopping
Share196Tweet123Share49
Alex John

Alex John

Hi, I am Alex John, A blogger and online marketer at AsiaPosts.com.

  • Trending
  • Comments
  • Latest
King Von Autopsy Photos Graphic

King Von Autopsy Photos Graphic

March 22, 2022
Luxury Gift Ideas for Couples

Luxury Gift Ideas for Couples

January 20, 2022
Tamilrockers Kannada Movies 2022 – Download HD Tamil, Telugu, Hindi Movie

Tamilrockers Kannada Movies 2022 – Download HD Tamil, Telugu, Hindi Movie

March 13, 2022

Some Useful Links for You to Get Started

0
How to Make Your Home More Eccentric

How to Make Your Home More Eccentric

0
5 Temples in Phuket, Thailand You Must Visit

5 Temples in Phuket, Thailand You Must Visit

0
The Future of Fantasy Sports: Emerging Trends and Innovations to Watch Out For

The Future of Fantasy Sports: Emerging Trends and Innovations to Watch Out For

October 4, 2023
Understanding Common Blood Tests and What They Mean

Understanding Common Blood Tests and What They Mean

September 25, 2023
Unlocking Success in the IRDA Exam: The Role of IRDA Mock Tests

Unlocking Success in the IRDA Exam: The Role of IRDA Mock Tests

September 19, 2023
Asia Posts- Trending Post Of the World

Copyright © 2022 AsiaPosts.com.

Navigate Site

  • Tips & Tricks
  • Education
  • Trending
  • About Us
  • Privacy Policy
  • Contact Us
  • Do my homework for me
  • GoodStoryHunt

Follow Us

No Result
View All Result
  • Home
  • News
    • Politics
    • Business
    • World
    • Science
  • Entertainment
    • Gaming
    • Music
    • Movie
    • Sports
  • Tech
    • Apps
    • Gear
    • Mobile
    • Startup
  • Lifestyle
    • Food
    • Fashion
    • Health
    • Travel

Copyright © 2022 AsiaPosts.com.