China’s consumers refuse to open their wallets. Is ‘luxury-phobia’ the problem?
Chinese households are not splashing out on luxury goods partly because they feel ‘stigmatised’ for doing so, scholar argues
As China struggles to boost consumer spending, a professor at one of the country’s top universities has argued that authorities first need to overcome a psychological barrier: a deep-seated “luxury-phobia” that has taken hold among the Chinese public.
For Su, the answer will partly lie in a change in attitudes: the pursuit of luxury goods “should not be stigmatised, but rather seen as a sign of social progress”, he wrote in an essay published last week.
The proposal appears to run counter to mainstream opinion in China, given the government implemented a strict austerity drive and campaign against extravagant spending last year.