(Source)
Previously label-loving consumers in China are reportedly turning to “dupes,” high-end replicas of branded items, in an effort to save money amid the country’s economic slowdown. Analysts say this trend This affects not only luxury brands, but also mid-range brands such as Nike and Uniqlo.
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Value over brand: The country’s real estate crisis, coupled with declining consumer confidence, has led to a decline in overall consumption and retail sales. Faced with pay cuts and job insecurity, consumers are now actively seeking more affordable alternatives as they prioritize value and quality over branding. According to researchers, social media searches for these counterfeit products will triple between 2022 and 2024. Mintel.
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Rise of ‘rational shopping’: The rise of dupes is impacting the exclusivity of high-end items and could potentially harm their future growth in China. Luxury brands such as LVMH have already experienced a decline in sales in the region. “There is no longer blind faith in well-known brands under today’s cautious spending trends. Instead, there are more rational shopping decisions that encourage active discussions about cheaper alternatives,” noted Blair Zhang, Mintel senior luxury and fashion analyst.
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