The main customer group of luxury brands is the middle class, and the economic recession is mainly the middle class, which has little impact on the rich and the poor.
Therefore, for the real luxury goods of the rich, the impact is not obvious; Poor consumers will not pay extra for this brand.
When the economy is in recession, the middle class loses its consumption power, starts to downgrade consumption and is no longer willing to pay brand premium for these luxury brands, so luxury brands will decline with the decline of the middle class.
Retail commercial market
According to the data of the National Bureau of Statistics, the total retail sales of consumer goods in the first half of 2022 decreased by 1.5% year-on-year. Among them, the national online retail sales increased by 2.9% year-on-year. Obviously, the development of physical retail is not optimistic.
The amazing withering speed of physical stores can not help but make people worry about offline retail. Many netizens even said that the physical store has completely lost to e-commerce.
The retail winter is coming! Don't believe it, 4,700 physical stores closed in the first half of this year alone, for example, Metersbonwe Bang Wei Bang Wei closed 35 1! 860 Senmaguan stores! The most ruthless is Yonghui, a supermarket chain giant, which closed 388 stores in three years, and its market value evaporated by more than 70 billion, and suddenly it was full of sorrow.
Unnecessary service industry
In the service industries such as beauty salon, housekeeping, child care, catering and training. The real profits of these industries are generally not essential services with low unit price like hairdressing, but non-essential services with high unit price, so these service industries will not be very good in the economic recession.
Undoubtedly, tourism is also a typical non-essential service industry. In the post-epidemic era, tourism is facing great uncertainty, which has caused great impact on the upstream and downstream of tourism.
As far as the current predicament is concerned, the non-essential service industry faces great challenges in terms of supply and demand, consumption trend, weak financial support and unbalanced regional development.