Source: NYT > Business
China's domestic luxury market is cannibalizing Western brand share not through price competition but by offering status goods rooted in Chinese identity—a structural advantage as nationalism and economic uncertainty make imported prestige feel less relevant. The shift differs from historical market losses: Western brands have not faded through complacency alone. Companies like BYD in EVs and heritage Chinese brands have engineered positioning that ties consumption to economic patriotism, making the consolidation around local players self-reinforcing.