> In the case of Japan over the last decade, we have seen a significant rise in popularity of inferior goods and a decrease in demand for premium goods. Japan’s most notable inferior good of the moment is “third-category beer” — a beer-like beverage with nearly zero malt content that sells for slightly less than real beer. Japanese consumers facing no economic constraint would choose Japan’s most iconic (and not particularly expensive) mass market beers such as Asahi Super Dry or Kirin Ichiban Shibori over third-category beer. So what does it say about the consumer market when Japan will soon have a majority “fake beer” market for malt-flavored beverages? Even with falling demand for beer-like drinks, third category beer is seeing growth. This is a sign that the consumer living standard considered normal just a decade ago has fallen dramatically into a new “basket of goods” that would once have be seen as only appropriate for the relatively destitute.
He means that instead of consuming name-brand goods, they increasingly look to knock-offs or non-premium brands (instead of French and Italian, maybe Uniqlo or low-rent brands).
It's not only in the consumer goods sector either. Japanese are now buying more produce from China --which tend to be cheaper.
Now, it all depends, some of this choice could increase living standards (more PP) or it could decrease them (subpar goods).
These two statements contradict each other.