"Price Hike Rumors Ignite Consumer Frenzy"
Leading Candidate for World's Largest Luxury Market in 2025
French luxury brand Louis Vuitton is reportedly set to raise prices on key products soon, sparking a wave of "open runs" (waiting before store opening) in China.
On the 7th (local time), Hong Kong Ming Pao reported, "As rumors spread that Louis Vuitton will increase prices starting from the 18th in China, long queues have formed in front of Louis Vuitton stores in many cities."
It added, "This price adjustment by Louis Vuitton comes just two months after the last one in December of last year," and "Contrary to cooling consumer reactions, the rumors have ignited a buying frenzy."
The media also noted, "News that Louis Vuitton will raise prices by 20% recently appeared on Weibo's popular search list," and "Long lines have formed not only in first-tier cities like Beijing, Shanghai, and Guangzhou but also in second-tier cities such as Wuxi, Nanjing, and Hangzhou."
Along with this, the outlet included a photo taken at 9 p.m. on the 4th showing a queue of customers waiting to enter a Louis Vuitton store in a shopping mall in Beijing.
The media reported, "Images of stores limiting entry due to the influx of customers have also been posted on social media," and "Certain popular handbag models are already sold out across China."
China's Luxury Market Rapidly Expanding... "Could Become the World's Largest Luxury Market by 2025"
Meanwhile, as China's luxury market grows, its status in the global luxury market is rising.
Last year, consulting firm Bain & Company estimated in its '2021 China Luxury Market Report' that China's luxury consumption in 2021?including leather goods, apparel, jewelry, wristwatches, and cosmetics?reached 471 billion yuan (approximately 87.13 trillion KRW), a 36% increase from the previous year.
The report pointed out that although the growth rate of China's luxury market in 2021 remained high following 48% in 2020, a clear "top-heavy" phenomenon emerged amid the country's rapid economic slowdown.
Additionally, China's share of the global luxury market rose by 1 percentage point to 21% in 2021 compared to the previous year. The report predicted that if the current trend continues, China will surpass the United States and Europe to become the world's largest luxury market by 2025.
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