Why Do Chinese People Like Luxury Goods So Much?

2331 Words Apr 6th, 2015 10 Pages
Why do Chinese people like luxury goods so much? There are two sides to explain, the first side is customer, and another side is luxury brands marketing strategy. For customer side, Chinese people purchase power is increasing year by year. China implemented the reform and opening policy at 1978, this policy accelerated China’s urbanization and industrialization, and then promoted China economic upward flourish; and because of the reform and opening policy, which provided more opportunity to luxury brands to get into China’s market, so Chinese people was given a chance to touch with luxury goods. Secondly, Chinese middle class or rich people regard owning luxury goods as a symbol of social status and wealth. Thirdly, Chinese people have the flaunt psychology, however, this psychology activity might not be a bad thing because flaunt means Chinese people want to get other people 's affirmation. Lastly, herd mentality. Luxury goods is not a necessity of life, but once the Chinese people 's living standards improve, and when they see their friends or advertising star use luxury goods, they might think that how about if I can have one? Further more, in luxury goods side, luxury brands are not only expanding and opening retail stores just in big cities, like Beijing, Shanghai, Guangzhou, they also focusing on smaller cities, like Shenzhen, Hangzhou, Chengdu. This action can give Chinese customer more opportunity to get touch in luxury goods. Secondly, Chinese consumers’ purchase…
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