Expectations for future income largely curb desire for comparison
Consumer spending is likely to remain relatively subdued for years to come.
Expectations for future income aren't as high as they used to be. The pressure of working your entire life just to buy an apartment in a big city significantly curbs the urge to keep up with others.
Human desires are shaped by expectations. If you expect to earn more in the future, you won't care much about how much you're spending today. Conversely, if you have poor expectations for the future, it inherently dampens consumer demand—especially the desire to save face through conspicuous consumption.
In the past few decades, what was being sold wasn't really the product itself—it was status. The old model went something like this:
How do you sell a product that costs 50,000 yuan for 5 million? You add 4.95 million in perceived status to it. Fine steel should be used for the sword's scabbard; you'll never get the chance to draw it. What people are really looking at is the scabbard.
Moving forward:
Consumer attitudes will lean more toward cost-effectiveness, meaning people will focus more on their own comfort: How much money do I have? How much can I realistically earn in the future? How much can I spend now? What am I actually getting out of my purchase?—rather than what others think I've obtained.