Commenting on the Chinese reducing their spending on luxury goods, SMU Lee Kong Chian Professor of Marketing Kapil Tuli pointed out that Chinese consumers form a very big part of the luxury market in Singapore, so their lower spending here will cause some turbulence. Looking at the Singapore market, Prof Tuli says those with massive flagships offering an immersive, luxury experience are “more protected”, as consumers are not going there just to pick up a bag. He explained, “These luxury brands do curate very fascinating luxury experiences for their most valuable clientele, with private rooms and so on, and these carry value because you can’t get an experience like that easily at other nearby locations. So, increasingly, you’ll see the performance differential for brands that are also providing a luxury experience and not just a luxury good."
