Latest news with #SuperZhuanzhuan
Fashion Network
2 days ago
- Business
- Fashion Network
Luxury Coach bag for $30? Deflation reshapes China's luxury market
Data released on Monday showed that consumer prices fell 0.1% in May compared to a year earlier. Due to oversupply and weak household demand, price wars have erupted across sectors, including autos, e-commerce, and coffee. "We still think persistent overcapacity will keep China in deflation both this year and next," Capital Economics stated in a research note. New businesses are targeting cost-conscious consumers by offering low-priced options, including 3 yuan ($0.40) breakfast menus at restaurants and supermarkets hosting flash sales four times a day. However, economists argue that these pricing battles are unsustainable. Companies that fail to compete may close, increasing unemployment and exacerbating deflation. Since the pandemic, rising price sensitivity has fueled growth in China's second-hand luxury market. According to a 2023 report by Zhiyan Consulting, the sector recorded annual growth above 20%. This growth has also led to a surge in supply, which is reflected in deeper discounts. Some new stores, including Super Zhuanzhuan, offer products at up to 90% off their original prices, far below the industry average of 30–40% in recent years. Discounts of 70% or more have also become common on major second-hand platforms such as Xianyu, Feiyu, Ponhu, and Plum. "In the current economic environment, we are seeing more existing luxury consumers shift to the second-hand market," said Lisa Zhang, an expert at Daxue Consulting, a market research and strategy firm specializing in China. "But sellers offer more discounts because of growing competition." At Super Zhuanzhuan, a green Coach Christie carryall handbag—originally sold for 3,260 yuan ($454)—now costs just 219 yuan ($30). A Givenchy G Cube necklace that once retailed for 2,200 yuan now sells for 187 yuan. "Each year, the number of sellers grows by about 20%, but the number of buyers has stayed relatively stable," said the founder of another second-hand luxury business in China, who requested anonymity to speak candidly. "The middle class—its salary has really decreased. The economy is the number one reason we're seeing these trends." He noted that while large cities like Shanghai and Beijing still support new market entrants, smaller cities lack enough demand. "I would expect most of the recently opened stores will eventually close," he said. University professor Riley Chang browsed at Super Zhuanzhuan—not to buy anything, as she has avoided big brands since the pandemic—but to assess the market if she decides to sell her possessions. She left unimpressed. "I've been to several major second-hand luxury stores in Beijing and Shanghai, and they all try to push your price as low as possible," Chang said. ($1 = 7.1833 Chinese yuan renminbi)
Fashion Network
2 days ago
- Business
- Fashion Network
Luxury Coach bag for $30? Deflation reshapes China's luxury market
Data released on Monday showed that consumer prices fell 0.1% in May compared to a year earlier. Due to oversupply and weak household demand, price wars have erupted across sectors, including autos, e-commerce, and coffee. "We still think persistent overcapacity will keep China in deflation both this year and next," Capital Economics stated in a research note. New businesses are targeting cost-conscious consumers by offering low-priced options, including 3 yuan ($0.40) breakfast menus at restaurants and supermarkets hosting flash sales four times a day. However, economists argue that these pricing battles are unsustainable. Companies that fail to compete may close, increasing unemployment and exacerbating deflation. Since the pandemic, rising price sensitivity has fueled growth in China's second-hand luxury market. According to a 2023 report by Zhiyan Consulting, the sector recorded annual growth above 20%. This growth has also led to a surge in supply, which is reflected in deeper discounts. Some new stores, including Super Zhuanzhuan, offer products at up to 90% off their original prices, far below the industry average of 30–40% in recent years. Discounts of 70% or more have also become common on major second-hand platforms such as Xianyu, Feiyu, Ponhu, and Plum. "In the current economic environment, we are seeing more existing luxury consumers shift to the second-hand market," said Lisa Zhang, an expert at Daxue Consulting, a market research and strategy firm specializing in China. "But sellers offer more discounts because of growing competition." At Super Zhuanzhuan, a green Coach Christie carryall handbag—originally sold for 3,260 yuan ($454)—now costs just 219 yuan ($30). A Givenchy G Cube necklace that once retailed for 2,200 yuan now sells for 187 yuan. "Each year, the number of sellers grows by about 20%, but the number of buyers has stayed relatively stable," said the founder of another second-hand luxury business in China, who requested anonymity to speak candidly. "The middle class—its salary has really decreased. The economy is the number one reason we're seeing these trends." He noted that while large cities like Shanghai and Beijing still support new market entrants, smaller cities lack enough demand. "I would expect most of the recently opened stores will eventually close," he said. University professor Riley Chang browsed at Super Zhuanzhuan—not to buy anything, as she has avoided big brands since the pandemic—but to assess the market if she decides to sell her possessions. She left unimpressed. "I've been to several major second-hand luxury stores in Beijing and Shanghai, and they all try to push your price as low as possible," Chang said. ($1 = 7.1833 Chinese yuan renminbi)
Fashion Network
2 days ago
- Business
- Fashion Network
Luxury Coach bag for $30? Deflation reshapes China's luxury market
Chinese energy sector worker Mandy Li enjoys treating herself to a luxury brand handbag from time to time. However, since her state-owned employer cut her wages by 10% and her family's property values dropped by half, she now buys only second-hand items. "I'm cutting down on large expenditures," said 28-year-old Li, while browsing at Super Zhuanzhuan, a second-hand luxury store that opened in Beijing in May. "The economy is definitely in a downturn," she added. "My family's wealth has shrunk by a lot" due to the property crisis that has affected China since 2021. As deflationary pressures intensify in the world's second-largest economy, consumer behavior continues to shift in ways that further suppress prices. Economists warn that this trend could entrench deflation and create more challenges for Chinese policymakers. Data released on Monday showed that consumer prices fell 0.1% in May compared to a year earlier. Due to oversupply and weak household demand, price wars have erupted across sectors, including autos, e-commerce, and coffee. "We still think persistent overcapacity will keep China in deflation both this year and next," Capital Economics stated in a research note. New businesses are targeting cost-conscious consumers by offering low-priced options, including 3 yuan ($0.40) breakfast menus at restaurants and supermarkets hosting flash sales four times a day. However, economists argue that these pricing battles are unsustainable. Companies that fail to compete may close, increasing unemployment and exacerbating deflation. Since the pandemic, rising price sensitivity has fueled growth in China's second-hand luxury market. According to a 2023 report by Zhiyan Consulting, the sector recorded annual growth above 20%. This growth has also led to a surge in supply, which is reflected in deeper discounts. Some new stores, including Super Zhuanzhuan, offer products at up to 90% off their original prices, far below the industry average of 30–40% in recent years. Discounts of 70% or more have also become common on major second-hand platforms such as Xianyu, Feiyu, Ponhu, and Plum. "In the current economic environment, we are seeing more existing luxury consumers shift to the second-hand market," said Lisa Zhang, an expert at Daxue Consulting, a market research and strategy firm specializing in China. "But sellers offer more discounts because of growing competition." At Super Zhuanzhuan, a green Coach Christie carryall handbag—originally sold for 3,260 yuan ($454)—now costs just 219 yuan ($30). A Givenchy G Cube necklace that once retailed for 2,200 yuan now sells for 187 yuan. "Each year, the number of sellers grows by about 20%, but the number of buyers has stayed relatively stable," said the founder of another second-hand luxury business in China, who requested anonymity to speak candidly. "The middle class—its salary has really decreased. The economy is the number one reason we're seeing these trends." He noted that while large cities like Shanghai and Beijing still support new market entrants, smaller cities lack enough demand. "I would expect most of the recently opened stores will eventually close," he said. University professor Riley Chang browsed at Super Zhuanzhuan—not to buy anything, as she has avoided big brands since the pandemic—but to assess the market if she decides to sell her possessions. She left unimpressed. "I've been to several major second-hand luxury stores in Beijing and Shanghai, and they all try to push your price as low as possible," Chang said. ($1 = 7.1833 Chinese yuan renminbi) © Thomson Reuters 2025 All rights reserved.
News24
2 days ago
- Business
- News24
Price wars grip China: R7 breakfasts, R500 for a luxury Coach bag
• For more financial news, go to the News24 Business front page. Chinese energy sector worker Mandy Li likes to treat herself to a luxury brand handbag once in a while. But since her state-owned employer cut her wage by 10% and the properties her family owns lost half their value, she only buys second-hand ones. "I'm cutting down on large expenditures," said 28-year-old Li, while browsing for items in Beijing's Super Zhuanzhuan second-hand luxury items store that opened in May. "The economy is definitely in a downturn," she said, adding: "My family's wealth has shrunk by a lot" due to the property crisis China has been grappling with since 2021. As deflationary pressures mount in the world's second-largest economy, consumer behaviour is changing in ways that could lead to further downward pressure on prices, raising concerns that deflation could become entrenched, posing more headaches for China's policymakers. Data showed on Monday that consumer prices fell 0.1% in May from a year earlier, with price wars raging in a number of sectors, from autos to e-commerce to coffee amid concerns about oversupply and sluggish household demand. "We still think persistent overcapacity will keep China in deflation both this year and next," Capital Economics said in a research note. New businesses are seeking success by targeting penny-pinchers, from restaurants selling 3 yuan (R7.40) breakfast menus to supermarkets offering flash sales four times a day. But this trend is worrying economists who see price wars as ultimately unsustainable as losing firms may have to close and people may lose their jobs, fuelling further deflation. Consumer price sensitivities' have accelerated growth in the Chinese second-hand luxury market since the pandemic, with annual growth rates surpassing 20% in 2023, according to an industry report by Zhiyan Consulting from last year. But that growth has also led to a spike in the volumes of such items available for sale - which is noticeable in the level of discounts on offer. Some new stores, including Super Zhuanzhuan, are offering items at discounts of up to 90% of their original price, compared with industry standards of 30-40% in recent years. Discounts of 70% or more are also now common on large second-hand platforms, such as Xianyu, Feiyu, Ponhu and Plum. "In the current economic environment we are seeing more existing luxury consumers shifting to the second-hand market," said Lisa Zhang, an expert with Daxue Consulting, a market research and strategy firm focusing on China. But sellers "have more discounts and it's due to more competition." At Super Zhuanzhuan, a green, carryall Christie handbag model by Coach, which its first owner bought for 3 260 yuan (R8 000) can be re-purchased for 219 yuan (R540). A 2 200 yuan Givenchy G Cube necklace can be found for 187 yuan. "Year-to-year, it's like 20% growth in the number of sellers, but the buyers' numbers are pretty much stable," said the founder of another second-hand luxury business in China, asking for anonymity to speak candidly about the state of the industry. "The middle class - their salary has really decreased. The economy is the number one reason we're seeing these trends." He said big cities such as Shanghai and Beijing have enough buyers to accommodate new market entrants, but elsewhere in China there isn't any room for more. "I would expect the majority of the stores which have recently opened up will actually close," he said. University professor Riley Chang was browsing through Super Zhuanzhuan not because she wanted to buy anything new - she hasn't spent money on big brands since the pandemic - but because she wanted to see what the market was if she sold any of her own possessions. She wasn't happy with what she saw. "I've been to several major second-hand luxury stores in Beijing and Shanghai and they all try to push your price as low as possible," said Chang.
Time of India
2 days ago
- Business
- Time of India
Price wars: China's middle class 'cuts down on large expenditures' as deflation deepens; shifts to second-hand luxury stores
This is a representative AI image Chinese shoppers are shifting their spending habits as economic pressures grow. Mandy Li, who works in the energy sector, stopped buying new luxury handbags after a 10% pay cut and a big drop in her family's property value. She now shops at second-hand luxury stores instead. "I'm cutting down on large expenditures," 28-year-old Li told Reuters, while exploring Beijing's Super Zhuanzhuan second-hand luxury items store that opened in May. "The economy is definitely in a downturn," she continued. "My family's wealth has shrunk by a lot" due to the property crisis China has been grappling with since 2021," she added. The shift in spending habits reflects deeper economic troubles. Consumer prices in China fell 0.1% in May compared to a year ago, raising fears that deflation may become entrenched. Price wars have broken out across sectors like cars, coffee, and e-commerce amid weak demand and overcapacity. New enterprises target budget-conscious consumers, offering 3 yuan breakfast deals and frequent supermarket sales. However, economists worry about the sustainability of price wars, as business closures and job losses could intensify deflation. The second-hand luxury sector grew over 20% in 2023, according to an industry report by Zhiyan Consulting from last year. This expansion has increased available items, reflected in substantial discounts. New establishments like Super Zhuanzhuan offer up to 90% reductions, compared to previous industry standards of 30-40%. The major second-hand marketplaces, including Xianyu, Feiyu, Ponhu and Plum, have also begun offering steep markdowns of 70% or higher on their merchandise. "In the current economic environment we are seeing more existing luxury consumers shifting to the second-hand market," Lisa Zhang, an expert with Daxue Consulting, a market research and strategy firm focusing on China told Reuters. At Super Zhuanzhuan, a Coach Christie handbag originally priced at 3,260 yuan sells for 219 yuan, whilst a Givenchy G Cube necklace's price dropped from 2,200 yuan to 187 yuan. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
