The New Chinese Luxury: Tiny Treats Are Taking the Spotlight
Once known for dressing up in high‑end handbags and couture, today’s Shanghai shoppers are turning inward.
The megabucks on designer labels have taken a backseat, while the smaller splurges—artisan foods, chilled cocktails and clever gadgets—are stealing the limelight.
Brands Riding the Fancy‑Tiny Wave
- Kweichow Moutai – the giant behind the pop‑corn‑priced baijiu – splashed a $10 cup of baijiu‑infused ice cream on the market in May. The first day alone netted 2.5 million yuan (about $70 k).
- Budweiser Brewing Asia‑Pacific—under the Anheuser‑Busch umbrella—reports that specialty beers and stylish gift boxes are flying off the shelves, even when priced at a few hundred dollars.
- During JD.com’s mid‑year 618 shopping spree, sales of water‑saving shower heads, smart toothbrushes, printers and other home‑tech gadgets leapt to four times the previous year’s volume.
“People are treating themselves to the little luxuries, and the novelty factor is kicking in,” says Mark Tanner, the brain behind the China Skinny marketing agency.
Why the Shift? Economic Chill and More
- China’s zero‑Covid mandate has fingered steady free‑flow of commerce and limited the usual fun of travel.
- The property market is teetering, and tech plus private tutoring sectors have tightened hiring after regulatory clamp‑downs.
- Yields in youth employment have jumped.
- Retail sales in the first eight months of the year grew a hair 0.5 %, compared to the 8–9 % uptick of recent years.
The Hard Hit on Western Luxury
Long‑time allies of Chinese consumers—Burberry and Kering (owner of Gucci & Yves Saint Laurent)—both reported plunges of about 35 % in China sales during the April‑June quarter.
A Personal Viewpoint
Lucy Lu, a 31‑year‑old marketing exec from Shanghai, tells us to cut her shopping habits down to the essentials: “If I like it, I sometimes think twice before purchasing it. Food‑outs are now my major treat.”
Spotlight for Artisan Pioneers
- Dal Cuore, a local ice‑cream shop, runs a scoop for roughly 40 yuan and plans a fifth store now that footfall has bounced back after a strict two‑month lockdown.
- More families—rather than just the traditional young folks—are now rolling up to indulge.
- “In hard times, folks crave a feel‑good win. Guilt‑free indulgences like ice cream keep the mood light,” says Gerard Low, the brand’s founder.
All in all, as big‑ticket spending pauses, the smaller pleasures—whether a creamy baijiu scoop or a shiny gadget—are powering a quiet but fierce new wave of luxury in China.