Core Viewpoint - The luxury goods consumption logic is undergoing a significant transformation, with younger consumers prioritizing value recognition over brand prestige and price, seeking high-quality products at lower prices [4][9][20]. Group 1: Changing Consumer Behavior - Young consumers are no longer attracted to luxury brands solely for their logos; instead, they value emotional connections and high cost-performance ratios [5][8]. - The trend of seeking discounts and third-party authentication for luxury goods is becoming prevalent, as evidenced by the growth of discount channels and the increasing importance of quality assurance [3][7][19]. - A Bain report indicates that while global luxury consumption is slowing, discount store sales are rising significantly, becoming the preferred channel for entry-level luxury purchases [3][6]. Group 2: Market Dynamics - Major luxury brands like LVMH and Kering are experiencing declines in profits, with LVMH's operating profit dropping by 15% and net profit by 22% in the first half of 2025 [6]. - Despite the downturn in traditional luxury sales, interest among younger consumers remains strong, with a significant portion of luxury goods users on platforms like Xiaohongshu being born after 1995 [6][14]. - The discount luxury market is projected to grow at five times the rate of the full-price market between 2025 and 2030, indicating a shift in consumer purchasing behavior [13]. Group 3: Trust and Quality Assurance - The need for independent, authoritative third-party institutions to provide quality assurance for discounted luxury goods is becoming critical, as consumers seek reliable authentication [17][19]. - The China Inspection and Quarantine (CIQ) has emerged as a key player in the luxury goods authentication industry, providing essential services to ensure product legitimacy [18][20]. - The collaboration between CIQ and e-commerce platforms to offer pre-sale inspections and certification reports is a significant step towards establishing a new quality standard in the discount luxury market [20].

Core Insights - The luxury goods market is experiencing a downturn, with Bain & Company predicting a decline in global luxury sales by 2% to 5% by mid-2025, marking the first significant slowdown since 2009 [5] - Despite the overall market decline, luxury goods have gained renewed consumer interest during the Double Eleven shopping festival, with significant year-on-year growth reported by various e-commerce platforms [4][6] Market Trends - The luxury market in China and the U.S. has shown a downward trend, influenced by macroeconomic factors and changing consumer behaviors, particularly among younger consumers who are becoming more rational in their spending [5][8] - The demand for luxury goods is diversifying, with consumers increasingly valuing newness, personalized experiences, and high cost-performance ratios, leading to a reshaping of the luxury consumption landscape [5][8] E-commerce Performance - Tmall reported double-digit growth in luxury brand sales during the Double Eleven event, with over 200 major brands launching exclusive seasonal products [6] - JD.com noted a significant increase in sales for luxury down jackets and jewelry, with some categories experiencing growth of 1.5 times year-on-year [6] - Vipshop has also seen over 30% year-on-year growth in luxury goods sales, driven by the appeal of discounted luxury items [6][3] Consumer Behavior - The perception of luxury is shifting from brand-centric to value-oriented, with consumers prioritizing emotional value and experiences over mere brand prestige [8][10] - The rise of discount luxury shopping channels is notable, as consumers seek entry-level luxury products at competitive prices [8][9] Industry Innovations - The introduction of independent authentication services by China Inspection and Quarantine (CIQ) on e-commerce platforms aims to enhance consumer confidence in discounted luxury goods [9] - The luxury market is increasingly influenced by younger generations, who prioritize style and personal resonance with brands over traditional brand loyalty [10]

Core Insights - The luxury goods market is experiencing a significant downturn, with global sales projected to reach approximately €1.48 trillion in 2024, reflecting a growth rate of only -1% to 1%, marking the first overall decline since 2008-2009 [1] - The industry is facing a "price dependency syndrome," with iconic products like the Chanel 2.55 handbag seeing a price increase from ¥38,100 in 2019 to ¥84,000 in 2024, a rise of 120% [3] - Consumer sentiment is shifting, with younger generations increasingly valuing cost-effectiveness, leading to a decline in the willingness to pay high premiums for luxury items [3] Market Trends - Discount channels are becoming a significant avenue for luxury purchases, with outlets and platforms like Vipshop gaining popularity among consumers seeking better value [5] - The search volume for discounted luxury items surged during events like the 618 Mid-Year Shopping Festival, with brands such as COACH and Burberry seeing heightened interest [5] - Promotions on platforms can lead to substantial price reductions, exemplified by a Burberry bag originally priced at ¥16,200 being offered for ¥4,199, representing a 75% discount [5] Consumer Behavior - The luxury market is transitioning from "symbolic consumption" to "quality consumption," emphasizing the need for brands to balance price and value to thrive in the evolving consumer landscape [7] - The true essence of luxury is increasingly defined by the value of the consumer experience rather than just the price tag [7]