As the luxury market in China continues to grow, brands may assume that young Chinese consumers will continue to pay top dollar for what they desire. However, a recent incident involving celebrity Ouyang Nana and the launch of her brand Nabi suggests that younger generations may be growing more sensitive to prices.
Nabi, a line of lounge wear and accessories, faced harsh criticism for its pricing. The most controversial item was a bathrobe priced at 998 yuan, which many deemed expensive and of low quality. The criticism spread like wildfire on social media platform Weibo, generating millions of views and comments. Users criticized the lack of concept, weak design, and high prices for what they perceived as inadequate quality.
An anonymous subcontractor even conducted a cost analysis of the bathrobe, revealing that it only cost around 65 yuan to produce. This revelation further fueled the criticism. Social media users mocked the brand on platforms like RED, attaching the Nabi logo to basic white products, implying that the brand was overcharging for simple items.
Ouyang Nana’s wealth and fame did not protect her brand from the backlash. Users accused her of being greedy for wanting to make more money despite already being prosperous. This incident raises questions about the traditional connection between celebrities and commercial appeal, suggesting that young consumers are becoming more discerning and less inclined to blindly follow celebrities’ endorsements.
The lesson for luxury brands is clear: if creative integrity is compromised, if perceived value is lacking, and if consumers view the brand as opportunistic, they will voice their dissatisfaction and may punish the brand in the long run. Short-term sales success is not enough to sustain a brand’s trust capital in the competitive Chinese market.
While young Chinese consumers are still interested in luxury, they are less likely to buy solely based on a brand’s name or celebrity endorsement. Price sensitivity is increasing, with younger generations no longer equating high prices to prestige and desirability. However, low prices must also be accompanied by high-quality products, as consumers are becoming more discerning overall.
This shift in consumer behavior could signify a new paradigm of luxury consumption in China. Brands need to adapt to these changes and prioritize creative integrity, perceived value, and transparency in order to maintain trust and desirability among younger consumers.
Useful Links:
1. Source: RED 2022 – Chinese Youth and Luxury Consumption
2. Chinese Brands and Consumers Amidst Fan Culture: Otter Incest Scandal
