A professor at one of China's top universities argues that consumers' reluctance to buy luxury goods stems partly from feeling stigmatized. He urges authorities to address this deep-seated 'luxury-phobia' and view luxury pursuits as a sign of social progress. The idea contrasts with the government's austerity drive last year.
China is struggling to boost consumer spending, but a professor at one of the country's top universities argues that authorities must first overcome a psychological barrier: a deep-seated “luxury-phobia” gripping the Chinese public.
Su Jian, from Peking University, contends that Chinese households are not splashing out on luxury goods partly because they feel stigmatized for doing so. In an essay published last week, he wrote: “the pursuit of luxury goods should not be stigmatised, but rather seen as a sign of social progress.” This comes amid weak retail sales, a slumping property market, and efforts to shift from export reliance to domestic demand to meet growth targets.
The proposal runs counter to mainstream opinion in China, where the government launched a strict austerity drive and campaign against extravagant spending last year. Keywords in the discussion include Swiss watchmaking, highlighting potential impacts on luxury sectors. Su Jian's perspective underscores the need for attitudinal shifts alongside economic policies to revive household consumption.