Sou Hu Cai Jing·2026-01-12 04:10Core Insights - The luxury brand sector, particularly the affordable luxury segment, is facing significant challenges due to tightening consumer spending and competition from both high-end second-hand markets and local brands [2][3][4] Group 1: Market Performance - Despite overall pressure, the Chinese market remains a strategic priority for luxury brands, with notable sales growth reported: Coach's sales in the Greater China region increased by 21% year-on-year for Q1 FY2026, while Ralph Lauren saw a 30% increase in the same period [3] - The second-hand luxury market in China is projected to reach a transaction volume of 38.4 billion yuan by 2025, with high-end brands like Chanel and Louis Vuitton leading in sales [4] Group 2: Competitive Landscape - The rise of local brands and the expansion of the second-hand luxury market pose significant threats to international affordable luxury brands, with local brands like Shanxiaoyousong and Qiu Zhen rapidly gaining market share [10][11] - Local brands are leveraging highly localized strategies, focusing on specific consumer demographics and cultural resonance, which has proven effective in attracting younger consumers [14][16] Group 3: Brand Strategies - International affordable luxury brands are responding to market pressures by revitalizing their product lines and redefining their brand positioning to appeal to younger consumers [20][23] - Brands are shifting their distribution strategies to enhance accessibility, with plans for more localized store openings and experiential retail environments [25][26] - Marketing efforts are increasingly focused on local culture and social media engagement, with brands collaborating with celebrities and utilizing platforms like Xiaohongshu and Douyin to enhance visibility [28][30]