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English to Chinese: luxury consumption phenomenon in China General field: Social Sciences Detailed field: Social Science, Sociology, Ethics, etc.
Source text - English China’s luxury consumption has increased dramatically in recent years. According to a McKinsey 2012 report, Chinese consumption of luxury goods accounted more than one fourth of worldwide consumption, and Mainland China ranked as the 5th largest personal luxury goods market. This booming luxury consumption phenomenon in China seems to be highly contradictory for a socialist country that traditionally values virtues such as frugality and modesty. Therefore, the main objective of this thesis is to identify the change of motivations for and perceptions of luxury in China. A second step in the research has been to question which factors have influenced this shift in Chinese luxury consumption culture. The study has been done with a deductive approach, where the traditional theoretical frameworks of luxury consumer behavior were elaborated together with Chinese luxury consumption theories, before searching for empirical data. The empirical foundation consists of a qualitative case study approach from five luxury companies that have been active in the luxury leather goods industry in China. Furthermore, the qualitative data is supported by already existing surveys of the Chinese luxury business and consumption climate from KPMG, McKinsey, Bain & Company, the Fung Group, and Exane BNP Parisbas. The results of the research not only show the key drivers of change in China’s luxury market, they also have a meaningful basis for selecting receptive target markets and formulating and implementing effective marketing strategies for luxury brands.
Keywords: luxury consumption, consumer behavior China, materialism, Confucianism, luxury brands
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