Middle-Class Consumption Transformation in Economic Downturns: Evidence from East Asia

The shift from department stores to discount platforms, from luxury brands to livestream promotions, indicates that economic uncertainty has reshaped the consumption behavior in East Asia. While prior studies have addressed either macroeconomic trends or consumer psychology, few have explored how structural economic insecurity and identity crisis jointly shape middle-class consumption patterns. This study explores the behavioral shift from identity-based to functional and emotionally supportive consumption among the middle class in China, Japan, and South Korea. Adopting a combined research methods approach primarily based on secondary literature, theoretical analysis, and comparative case studies, the study reveals that consumption downgrading is not merely a cyclical adjustment, but a structural transformation entrenched in multidimensional distress from social, economic, and psychological dimensions. Moreover, it identifies a paradoxical coexistence of conservative financial behavior and emotion-oriented consumption. The insights suggest that under constrained resources, middle-class consumers are redefining the good life and shifting their consumption priorities rather than exiting from the market, signaling a coping strategy in response to economic and psychological stressors.