Luxury Brands and Social Media in China: New Trends and Development

Abstract

This paper offers insights into the use of social network sites and e-commerce platforms to engage consumers against the background of increasing consumption of luxury brands by young consumers in China. The data were obtained from personal interviews with 20 respondents between 20 and 30 years of age who were recruited via a snowball method in Hong Kong. Young Chinese consumers have varied reasons and patterns for luxury consumption. The key motivations and behavior patterns toward the use of social media and e-commerce platform in their luxury purchase are also examined. Companies must consider the differences that exist within this generation to effectively approach this market. The findings show that young consumers in China tend to heavily rely on information from online social networks and e-commerce platform in the pre-purchase and purchase processes. Social networks and e-commerce platforms also facilitated the cross-border luxury buying behaviors of Chinese consumers. Luxury retailers are required to rethink the roles of physical shops and develop better integration of online and offline activities to meet the changes of Chinese consumers. The motivations of buying luxury brands as well as their use of social media in connection with luxury brands are investigated. This study thus contributes to the research of the marketing of the luxury goods market in China.