Driven by the peak consumption season of the Spring Festival, consumers’ enthusiasm for purchasing luxury goods remains unabated. In a shopping mall in Shanghai, I saw long queues in front of multiple luxury brand stores. Staff said that consumers cannot go overseas to buy luxury goods due to the epidemic, but consumer demand still exists, so the queues have started since last year. The growth in personal luxury goods consumption has also driven the second-hand luxury goods market. The manager of a second-hand luxury store in Shanghai said that as some luxury brands increase their prices multiple times in 2020, the prices of second-hand luxury goods will also rise accordingly. When encountering some popular and hard-to-find styles, the second-hand price may even be higher than the counter price. Data shows that China's personal luxury goods market will grow by 48% year-on-year in 2020, reaching nearly 346 billion yuan. Industry insiders said that the second-hand luxury goods market has entered a period of rapid growth in the past two years. The psychology of luxury goods consumption

For many people, buying a luxury handbag is not uncommon: perhaps as routine as buying a shirt. While the appeal of luxury goods is undeniable—the leather is soft and the branding is flashy—the price tag can be off-putting.

Unless you have a good job with a high salary, or develop good personal saving habits, buying luxury goods will cause unnecessary financial burdens. In fact, many consumers who buy luxury goods do not have the financial ability to afford luxury goods; one explanation is that many consumers behave irrationally. Because some people think that non-luxury goods are always inferior to luxury goods, they also think that the higher the price, the better the quality (and the quality or durability of many luxury goods is actually not high). For some consumers, luxury goods can go a long way in boosting their self-esteem or providing a sense of belonging.

Gaining a sense of accomplishment is another reason why some people buy luxury goods.

The higher the price, the better the quality? One possible explanation is that people tend to overemphasize the advantages of a product and ignore its disadvantages. In the case of Apple, consumers wait all night for the release of new computer products. Although Apple's products are not technically unique or superior. In fact, Samsung makes phones with better features (compared to most iPhone models), while phones from Microsoft and Xiaomi also generally have lower prices. Self-esteem is one of the factors that influence purchasing behavior

Sometimes, low self-esteem can be a factor that affects whether consumers purchase luxury goods, especially if they cannot afford the cost of the luxury goods. For some consumers, luxury goods can go a long way in boosting their self-esteem or providing a sense of belonging. With the rise of online shopping, a $500 scarf is just a click away. For luxury brands, the Internet makes it easy for buyers to make impulse purchases. A sense of accomplishment is another reason why some people buy luxury goods. They want to reward and reward themselves for their hard work, but they often can't afford it.

There’s a reason why people turn away from knockoff Rolexes in favor of the genuine article (even if they look exactly the same). Even though it looks the same, people who use it will know that what they have is not a true luxury product. If we buy luxury goods to show off to others and feel like they belong to us, why can’t fake ones serve that purpose? Because for some people, buying a pair of fake Christian Louboutin boots is the same as not buying them at all. thing. People buy luxury goods for a variety of reasons; almost all of them are related to the strong emotions we feel when purchasing a luxury product. Regardless of whether a consumer's financial situation allows them to buy an item, they will buy it anyway to get a certain feeling? For example, a sense of accomplishment from hard work or recognition from others. Four factors driving the growth of China's domestic personal luxury goods market against the trend

The reason why my country's domestic luxury goods market has been able to achieve growth against the trend is not only the objective factors caused by the epidemic, but also the upgrading of domestic mass consumption and the market Driven by endogenous driving forces such as the continuous improvement of the business environment and more abundant and mature channels. Specifically, there are four factors:

1. my country’s luxury goods market maintains rapid growth inertia

China’s personal luxury goods market maintains rapid growth. According to the Bain report Statistics have shown that the growth rates were 21.4%, 19.7%, and 37.6% respectively, indicating that Chinese consumers have strong demand for luxury goods.

Although the epidemic has caused some consumers to reduce large expenditures, the income changes of the main luxury purchase groups are not enough to force them to reduce their love for luxury goods. In the absence of huge fluctuations in consumer psychology, the luxury goods market maintains its original growth inertia.

2. China’s business environment continues to improve

In recent years, our country has actively created a first-class business environment that is market-oriented, legalized, and internationalized. In order to further expand opening up to the outside world and develop higher-level An open economy provides important guarantees.

The continuously improving business environment has played a positive role in promoting the development of my country's domestic luxury goods market. At the same time, in order to create a fairer consumption environment, my country has implemented import tariffs on some commodities since 2019. Through adjustments, tariffs on some categories of clothing, shoes and hats have been reduced by more than 50%, and the price gap between domestic and foreign luxury goods has further narrowed. Hainan’s new tax-free policy has injected new vitality into the luxury goods market. Data shows that the total sales of Hainan’s four outlying island duty-free shops are expected to exceed 32 billion yuan in sales. Among them, since the implementation of the new policy on July 1, the sales of duty-free shops on outlying islands have accounted for 71%, and the sales of four duty-free shops on outlying islands have increased more than 2 times year-on-year. It can be said that a good business environment is the key to achieving consumption upgrading and high-quality market development.

3. The epidemic has promoted overseas high-end consumption

On the one hand, the global epidemic situation is not optimistic. The number of Chinese outbound tourists has dropped sharply, and overseas high-end consumption has also declined. Purchase demand can only be achieved domestically. Market release. On the other hand, my country's epidemic prevention and control measures are scientific and effective, and the resumption of work and production, as well as the resumption of business and market, are steadily advancing, which has greatly enhanced the confidence of international brands in developing in China. The growth rates of China's luxury goods market and the global luxury goods market have diverged significantly since the second quarter, and the Chinese market's share of the global luxury goods market has also increased significantly.

4. my country’s online retail channels are more mature

From the perspective of transaction volume, penetration rate, and number of users, the development of my country’s e-commerce industry is already at the leading level in the world. In 2020, my country's online retail sales of physical goods reached 9.8 trillion yuan, a year-on-year increase of 14.8%, accounting for 24.9% of the total retail sales of consumer goods. According to data from the China Internet Network Information Center, as of the first half of 2020, the number of Internet users in my country has reached 940 million, equivalent to one-fifth of the world's Internet users. Among them, the proportion of netizens using mobile phones to access the Internet reached 99.2%. Therefore, during the epidemic, online channels not only drove the growth of my country's overall consumer goods market, but were also an important force in promoting the rapid growth of the domestic luxury goods market.