This Book Explores The Chinese Consumers’ Luxury Consumption

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

Sociocultural: In the recent years, the desire to appear wealthy has attributed to the increased popularity in luxury products. Also, the desire for luxury goods was promoted by effective advertising and TV programming that promoted conspicuous consumption to middle-income consumers. Middle-income consumers also tend to “reward” themselves with luxury items.

The term “Confucianism” is often regarded as a complex mechanism of social, political, moral as well as religious beliefs that have considerable influence especially upon the civilizations belonging to the East Asian countries such as China, Hong Kong, Taiwan, North Korea, South Korea along with Singapore and Vietnam. With reference to the observation made by Reid (1999), it can be viewed that a clear depiction about different principles and beliefs exists within the sphere of “Confucianism”. Therefore, the major purpose of this report is to briefly review of T. R. Reid’s book “Confucius Lives Next Door: What Leaving In The East Teaches Us About Living In the West” through concisely unfolding the experience of

From consumer’s perspective, the motivation of their purchasing high-end products is complicated. According to the report of Mintel (Academic.mintel.com, 2013), which showed that the reason why a large number of customs have purchased luxury merchandise in UK. There were 44 percent of female interviewees and 48 percent of male interviewees bought high-end goods due to the good quality. In addition, 31 percent of men and 18 percent of women consider the sophisticated technique

The author who inspired the topic of this thesis is Dana Thomas. As a fashion writer, Dana Thomas, has analyzed the changes in luxury fashion business. Thomas has been writing about fashion for the past twenty-five years in various journals such as Newsweek, The New York Times Magazine, New Yorker, Harper’s Bazaar, Vogue, Financial Times, and more. Dana Thomas’ two books, Deluxe and Gods and Kings, are the inspiration for this thesis. Deluxe: How Luxury Lost Its Lustre goes into great detail the secrets of the leading luxury industry brands, namely Prada, Gucci and Burberry, to showcase the “New Luxury” of today and how “luxury lost its luster” by featuring the manufacturing and logistical processes. Thomas exposes that many luxury brands use the same Asian factories that mass-market retailers employ, which raises questions concerning quality and craftsmanship for luxury brands.

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

In a properly ordered society everyone would benefit to varying degrees. Humane treatment of self and others begins in the familial environment spilling over into all aspects of life. The very foundation of proper order is the importance of human interests and all other characteristics of proper order are dependent on these interests. Confucianism is a multifaceted system of moral, social and religious thoughts prominent in the history of East Asia. Confusciouos teaches that it is unrealistic to believe that proper order equals equality. In the western culture beliefs support that equality should triumph over all. Individuals who grow and work for themselves are held in the highest regard because East Asian culture includes the belief that people should get what they earn based on how hard they work. Balance is a necessary building block in promoting a cohesive environment. A persons or

It is hard to imagine that after the financial crisis swept across Europe, many great transitional enterprises had to face collapse and bankrupt while the luxury goods industry become more prosperous. Recently, the French luxury goods group LVMH announced their recent business condition. The volume of the first week in October had incredibly increased by 12% the previous week. The Hermes Corporation also said that in order to meet the increasing number of market demand, it would open 15 branch stores in the latter half of the year. These aroused some fierce debates, the public held a skeptical opinion towards the questions: How can the luxury companies maintain their positions? Why didn’t they strike down by financial crisis?

Deluxe: How luxury lost its luster, by Dana Thomas, brings a hard hitting, raw look at the world of luxury and the mass demand of luxury that has occurred. The book was published by the Penguin Group in 2007. Luxury is defined by Thomas as truly special, and was only available to the aristocratic world of wealth and old money in western culture. Luxury signified an experience and lifestyle that denotes royalty, fame, and fortune. However, with large companies owning the former family-owned luxury producing businesses, profits are the main goal not the production of luxury. Thomas reveals the unfortunate demise and rise of

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.

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

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.

Confucianism has easily been influential in the development of the Chinese state through history. In fact, the core ideals of Confucianism have evolved. Despite the harsh repression of Confucianism by Marxist revolutionaries during the second half of the twentieth century, Confucian values continues to be influential in Chinese society and recently, Confucian political philosophy has resurfaced again. In addition, the political ideas and social ethics of Confucianism can provide the basis for a new, functional form of government in China. Confucianism can be a viable political philosophy for China in the twenty first century because many intellectuals have turned to Confucianism to make sense of such social

Confucianism has its roots in the life of the average Chinese, be it subtle or pronounced. This philosophy can be defined as a system of ethics, education, and statesmanship taught by Confucius and his disciples, stressing love for humanity, ancestor worship, reverence for parents, and harmony in thought and conduct. It is important to clarify that for the purpose of this paper Confucianism will be viewed as a philosophy and not as a Religion. A close glance at the current Chinese communities and how Chinese operate will give the impression that Confucianism has died and is no longer relevant to the way of life in China. However, a changing society has given rise to a change in the way of life; and so Confucianism has taken on a new form. In

Hermes’s international strategy indicates its desires to explore and expand Chinese market. They realizes that as more and more Chinese enter the middle class, move to cities and get rich enough to indulge themselves in what he calls “elegant products”.