In recent times, as some parts of the world are slowly resuming their consumption habits, a fascinating trend known as Revenge Spending has gained significant attention. This week, the BLSTK Replay, a strategic luxury watch content developed by BalistikArt agency, dives into the interpretation of this concept.
Revenge Spending fundamentally refers to the act of spending more money than usual as a response to the feelings of oppression that many consumers have experienced since the beginning of the pandemic. This trend first emerged in China during the lockdown period, where dedicated hashtags on social media and the sharing of wishlists became prominent as people eagerly anticipated the reopening of stores. The impact of this enthusiasm was quickly evident, as luxury purchases in mainland China more than doubled from 32% in 2019 to over 70% in 2020, as reported by Bain & Co. This desire for revenge spending is not limited to the luxury sector and can also be observed in other industries such as travel.
The resurgence of luxury consumption in China has sparked hope for a swift recovery for high-end brands. For instance, when the Hermès store in Guangzhou reopened in April 2020, it achieved record-breaking sales of $2.7 million in a single day. This significant milestone indicates that the wealthiest customers, particularly in Guangdong province, which is the richest region in China, eagerly awaited the chance to shop again. Sales data reveals a frenzy of purchases across various segments, including rare bags like the diamond-studded Birkin model, tableware, furniture, shoes, and other leather accessories. These VIP buyers have been actively sharing their shopping experiences and acquisitions online, especially on platforms like Weibo. It is possible that this revived appetite for consumption may extend beyond Chinese borders.
In addition to exploring Revenge Spending, this week’s BLSTK Replay also covers other intriguing topics such as Chanel’s new film Inside, the latest in Marvel’s hero lineup, and engaging conversations on Clubhouse. If you’re interested in staying updated on the luxury industry and digital trends, don’t miss out on the complete BLSTK Replay of the week.
For further information about Revenge Spending and its impact on the luxury sector, you may find the following links useful:
1. “Revenge Spending: Exploring the Phenomenon of Revenge Shopping” – Bain & Company
2. “Revenge Spending: How China is Returning to Shopping” – CNBC
