Recently, 犒赏经济 has become a hot topic in China. The related articles try to show resilience in consumption and suggest a way to lift consumption.
While I agree with the necessity of this concept, as consumption in China needs to upgrade to “quality consumption” as some may say, I think 犒赏经济 is also trying to avoid some other key issues.
1/ key examples of 犒赏经济 are also lipstick effect.
Usually these articles argue that the rise in blind box toy sale like Popmart is a form of 犒赏经济.
However, if you think about it, Popmart toy is also like high-end brand lipsticks – people are replacing large item luxury purchases (handbags etc.) with smaller items ($20).
The desire to buy luxury products still exist during a bad economy, but people choose to buy stuff that have less impact on their financials.
One common use case of Popmart toy is to attach it to luxury handbags. Adding the “attachment” makes people feel that the handbag is “new” , thus somehow replacing the need to buy a new one.
Other examples of 犒赏经济 can also be lipstick effect.
Buying a nice dessert on the way back home? That’s a replacement for a much more expensive dinner out.
2/ 犒赏经济 tolerates other negative effects on overall consumption like stress or off-times.
Some part of the 犒赏经济 is not to celebrate in my opinion.
The mental stress is usually mentioned as a cause of rise in 犒赏经济, but is that a good thing? Are economists going to argue that in order to drive 犒赏经济, more people need to feel the stress?
Plus, these articles avoided discussions of long working hours and short holidays.
Long working hours is limiting dinner consumption and other 夜间经济.
In most companies in China, young people only get 5 days of annual leave per years. In additional, many companies will ask why you take a leave, and there is no such thing as getting paid for unused leaves. I bet many European people would say that like hundreds of years ago.
In 1936, France introduced law for 2 weeks of paid leave for all workers. This is on top of 9 days of national holiday at that time. The 2 weeks was further raised to 3 weeks in 1956, to 4 weeks in 1969, and to 5 weeks in 1982.
Wonder why concert is more popular than traveling? Because concert is usually in the city or a weekend trip that doesn’t involve taking a leave.
Let me just stop here.
Overall there are huge potentials in consumption in China I believe, and the quality consumption is the way to go. But some limiting factors need to be addressed first.