China’s luxury market, after a period of sluggishness, is seeing a potential resurgence, fueled by the Qixi Festival, often dubbed the “Chinese Valentine’s Day.” This romantic occasion has turned luxury goods into a sought-after gift choice. However, even amid this seasonal spending surge, consumers remain keenly focused on value for money.
The trend of gifting during Qixi continues the patterns observed last year. According to research by iiMedia Research, apparel, shoes, and handbags are among the top three gift categories for Qixi 2024. E-commerce platforms are reporting a significant increase in luxury goods sales.
What differentiates this year’s Qixi luxury spending from previous years is the widespread pursuit of high value and attractive discounts. Take, for example, Xue Lin, who works in Beijing. Ahead of the Qixi holiday, he planned to buy his wife a luxury brand’s hobo bag and visited physical stores with her. After careful consideration, however, she decided to purchase the bag during a limited-time discount event on an e-commerce platform, saving as much as two-thirds of the regular retail price.
E-commerce platforms are capitalizing on the Qixi-driven luxury spending spree by ramping up their discounted luxury offerings. Discount e-tailers are launching multiple luxury goods sales events leading up to Qixi. For instance, a Burberry small shoulder bag was priced at ¥2028 ,significantly cheaper than its typical discounted price. Similarly, a Tory Burch classic small square bag was offered at ¥2788, nearing its historical low on the platform.
Beyond luxury goods, the Qixi Festival is boosting overall consumer spending. Data from iiMedia Research reveals a consistent year-on-year growth trend in China’s gift economy market since 2018. In 2024, the market is projected to reach ¥1.3777 trillion, with forecasts predicting ¥1.6197 trillion by 2027. These figures demonstrate the robust activity in China’s gift economy and illustrate a growing consumer emphasis on celebrating occasions and expressing emotions.
Zhuang Shuai, founder of BaiLian Consulting and a retail e-commerce expert, believes that the popularity of discounted luxury goods before Qixi signals a shift in consumer behavior, with shoppers increasingly valuing both cost-effectiveness and emotional satisfaction when making purchases. This trend is extending from personal consumption to gift-giving. Young people are moving away from the “more expensive is better” mentality that previously drove luxury purchases, and prioritizing value, and a sense of getting a great deal.
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