Louis Vuitton. Photo: depositphotos
The slowdown in China’s economic development is not an abstract concept for 23-year-old Zheng Zewei, who works full-time at an advertising agency in the southern metropolis of Guangzhou. This was reported by timeukraineisrael, citing CNN.
Decreased Income and Changing Consumption Habits
Initially a model, Zheng earned 30,000 yuan ($4,230) a month when she started working two years ago. However, starting last year, as new business at her company began to decline, her salary was gradually reduced, culminating in a significant cut in February that brought her earnings down to half of her previous salary.
“I was extremely shocked,” she told CNN. Zheng mentioned that she immediately cut her expenses to match her new salary, which meant no more Louis Vuitton, Chanel, or Prada—her once-popular brands.
Louis Vuitton. Photo: depositphotos
Rise of “Pingti” Popularity
According to Laurel Gu, director of the Shanghai research firm Mintel, the apparent economic slowdown has led to a threefold increase in searches for counterfeit products on social media from 2022 to 2024. Today, Zheng and her friends are spending their limited funds on so-called “pingti” products—high-quality replicas of branded goods known as dupes.
These products often are virtually indistinguishable from the originals, offering more colors or textures at significantly lower prices. For example, a pair of Lululemon Align yoga pants costs 750 yuan ($106), while similar leggings can be found on Tmall for just $5.
Impact on Luxury Brands
The growing affection for “dupes” in China poses a challenge not only for Louis Vuitton but also for other brands. LVMH’s sales fell by 10% in the first half of this year in the Asia-Pacific region (excluding Japan) compared to 2023.
The trend of “pingti” is also exacerbating overall weak consumption and retail sales that have fallen short of already low expectations. Economists are concerned that China may not meet the target growth rate of 5% announced in March.
Photo: royaldesign
Cautious Consumers
Consumers are becoming cautious about preserving their incomes. For instance, a primary school math teacher from Chongqing named Xinxin, who was previously a devoted fan of Estée Lauder’s Advanced Night Repair serum, has turned to budget alternatives due to a more than 20% salary cut this year.
The unemployment rate among 18- to 24-year-olds hit 18.8% in August, the highest level since the metric was reintroduced in January. China’s economy is facing significant difficulties, and consumers are trying to preserve their wealth by cutting back on spending and investments.
The decline in consumer confidence and the rise of the “fake economy” underscore the severe economic challenges facing China. This situation highlights changes in consumer preferences and illustrates how the younger generation is adapting to new economic realities.
