Chinese People Prefer Buy Luxury

The United States is the most open market in the world, with the annual trade volume more than 1,100,000,000,000 U.S. dollars. The United States is China's major trading partner. Now the total volume of products that are made in China importing into the United States is more than 100,000,000,000 U.S. dollars. These products are consumer goods, mostly through a number of intermediate links into the United States. Many Chinese factory productions and the market are out of touch. They lack understanding of the international market, which requires enterprises to know more about the international market.

The consumption of luxury goods in China is mounting sharply. Not only those born to elite families, but also many common people are greedy for luxury brands (China, a Booming

An increasing economic interdependence of national economies across the world experiences a rapid cross-border movement of goods, service, technology and capital. Luxury goods industry, serve as one of the most competitive industry, emerging and developing rapidly all the time. To a great extent, globalization promotes the development of luxury goods industry significantly in spite of the big shock hit by several times of economic crisis.

According to the textbook, "Euromonitor projects that the Asian-Pacific region will be the largest market in the world for luxury goods by 2008" (Thompson, Peteraf, Gamble, & Strickland, 2016).

This behavior brings competitive advantages to the European luxury brands. Moreover, customers in different countries have different purchase behaviors. For instance, some countries’ customers are willing to move away from common recognized brand, because they want to purchase more exclusive products. Furthermore, because of the increasing speed of globalization, people are more likely willing to travel between different countries. These travelers will buy luxury good during their trips. In fact, Chinese tourists contributed over one third of sales in Europe. The luxury goods industry should notice to adjust the actual demand between local people and tourists in Europe

Their average monthly consumption times are more than twice, and the consumption cost is also the highest in all age groups. The China Daily newspaper has reported that, younger Chinese luxury goods consumption has become a trend. In their survey of Chinese youth luxury goods consumption, more than 60% of young consumers indicated that in order to pursuit fashion and taste, they are willing to pay big bucks to buy luxury goods (Wu, 2014).

Life-style appeal; people want to believe they can live wealthy by spending on luxury goods when they really can’t afford it.(O)

The overall sales of luxury goods in the year 2009 is expected to be more than US$150 billion and Asia contributes 10% to it. The concept of luxury is now not confined to only to Europe and US, the Asian subcontinent contributes majorly to it, with India and China as the newly emerging markets. Professor James Twitchell (2002) comments on the democratization of luxury and the changing consumer psychology These new customers for luxury are younger than clients of the old luxe used to be, they are far more numerous, they make their money far sooner, and they are far more flexible in financing and fickle in choice. They do not

* Elaborate on China’s current housing market and see how close is it to the housing market condition in the US

In 2009, the renowned toy giant Mattel attempted to globalize of one of America’s most popular toys, Barbie, to China. Chinese consumers had been purchasing Barbie dolls from local department and toys stores throughout China. With this, Mattel saw potential, and they decided to open a six-story, 35,000 square feet, 30-million-dollar facility in Shanghai, entirely dedicated to Barbie named House of Barbie. Not only did they sell Barbie dolls, but they also sold Barbie clothes, furniture, and accessories. The store even housed a coffee shop and a Barbie-themed restaurant. Undoubtedly the vision was to establish Barbie as a prestigious brand in the Chinese market (Medina 2009). However, in 2011, only two short years

Risk is a core reason why other luxury goods companies, with an eye on a Hong Kong listing, have hesitated. Prada was bold in its listing strategy, and that has to be one of the biggest lessons. It is one thing to identify emerging Asia – and China in particular – as the sweet spot of luxury goods opportunity, it is another to act on it

The report then delivers an audit of the Chinese market including size, consumer behaviour, distribution and transport channels, promotional mechanisms and pricing arrangements. Major competing firms are analysed and their marketing tactics are discussed.

The last problem we highlighted concerns how to increase the number of customers in the mainland China market . First, we believe that the most relevant issue is a survey amongst customers on the Shanghai Tang brand perception and the 5 luxury brands in their top-of-mind, in order to analyze the competitors that the company has to face in the future.

Second-hand trades have been growing rapidly in the past __ years. The second-hand industry grew at about 7% a year in 2014 and 2015, according to the National Association of Resale Professionals (Narts). Second-hand luxury goods, in particularly, has become a unique segment standing out among the rest of second-hand products. While companies like The Real Real and What Goes Around Comes Around (WGACA) have been successfully enticed U.S. customers to sell and buy second-hand luxury, they might have left another huge group of potential customers behind – international college students from China, who carry a stack of cash to the US each year and share a strong enthusiasm towards luxury brands at a young age like most middle-class Chinese. This study intends to focus on Chinese students studying in the US, their culturally specific motivations and concerns for shopping second-hand luxury so as to provide insights for local second-hand stores to better attract them as potential customers.

In terms of social culture, for one thing, the China consumers are attracted by middle- and high-end products and somehow more attracted by French luxury goods, and they believe that the higher the price, the better the quality (Yuval, Vinay and Cathy, 2011, para7) (Exhibit 1). For another thing, the traditional virtue of thrift is rooted in the mindset of the Chinese, with which some of the rich in China indicate that they would not spend a large sum of money to get a product.