An explanatory study on the changes of Chinese consumers' behaviour toward Luxury Goods

The evolution of emerging markets and the incredible growth that Asian countries experienced, brought China to become one of the most important countries for luxury goods consumptions. The change from an industrial economy to a service economy, led the Chinese middle class to grow increasingly and to play a fundamental role for the development of Western luxury goods companies. In order to better understand the actual situation of Chinese society and its luxury market, it has been provided a detailed analysis of the growth trends that characterised the five categories in which the luxury good industry can be divided. Fundamental to understand the huge growth of luxury goods categories in China is the description of habits and attitudes of Chinese luxury consumers that have been classified in four different groups. The dilemma between standardisation and adaptation which company have to face when entering in new markets, allowed to introduce some Chinese luxury brands that have been created or acquired by some of the western major groups that operate in the luxury industry. The development of new Chinese luxury brands brought the research to focus on Chinese luxury consumers. The principal aim of this research has been to understand if the behaviour of Chinese luxury consumers toward the consumption of luxury products has changed. Results showed that a gradual rise of new values as Individualism and personal identity bring Chinese consumers to prefer luxury goods which reflect their traditions and culture. In this context they would strongly prefer global brands adapted to Chinese market because they perceive Western Luxury products as more reliable in terms of quality, craftsmanship and heritage. This allowed to conclude that Western luxury companies should start developing new Chinese oriented brands or collections to be continuously successful in this country and face the competition that will gradually come out from the Chinese market.