Chinese Luxury Consumers Research Articles

A new understanding of Chinese luxury consumers’ spending surge: role of pandemic-related negative emotions

ABSTRACT This study examines the motivations and antecedents of consumers’ revenge-spending behaviour in the post-pandemic and the moderating effects of negative emotions on the relationship between these antecedents and revenge-spending behaviour. Data collection was conducted in China regarding the luxury fashion industry. 481 respondents were analysed using structural equation modelling. The results indicate that positive mood reinforcement, arousal need, and material resource need positively influence revenge spending. Moreover, boredom, depression, fear, and anxiety exhibited varying moderating effects on revenge-spending behaviour, depending on preceding factors. This study provides recovery strategies for businesses based on psychological antecedents and well-being outcomes of revenge spending.

The influence of virtual community platform attributes on Chinese luxury consumers’ purchase intention: The role of policy innovation in digital infrastructure

This research examines the influence of virtual community platform attributes on luxury consumers’ purchase intentions, with a specific focus on the role of policy innovation in digital infrastructure. The study aims to 1) identify key factors affecting purchase intentions toward luxury products in virtual environments; 2) develop and validate a structural equation model to analyze these intentions; and 3) provide actionable insights for luxury goods marketers to refine their strategies within these platforms. Utilizing a structural equation model, the study investigates the interactions among various determinants of consumer behavior in virtual communities, highlighting the impact of policy innovation. Data was collected through purposive sampling from 1142 respondents in China’s top 10 high-spending cities on luxury goods, ensuring data relevance. The findings emphasize the significance of knowledge sharing, interactive communication, and leaders’ opinions in virtual communities in building consumer trust and shaping perceptions of online reviews. These elements influence purchase intentions directly and indirectly, with consumer trust serving as a crucial mediator. The study reveals the substantial impact of virtual community attributes on fostering consumer trust and shaping buying decisions for luxury items, underlining the contribution of social development processes. Moreover, the role of policy innovation is found to be significant in enhancing these virtual community dynamics, suggesting that regulatory changes can positively influence consumer engagement and trust. The conclusions offer valuable implications for marketers, proposing strategies to boost consumer engagement and drive sales in virtual settings. This research contributes to the theoretical understanding of digital consumer behavior and provides practical strategies for innovation and growth within the luxury goods sector, emphasizing the critical role of policy innovation in shaping these dynamics.

The Effects of Brand-self Connection on the Willingness to Pay a Price Premium: A New Look at the Consumerbrand Relationship in the Chinese Luxury Market

Exploring brand-self connection as a tool for driving profitability is gaining traction among scholars and industry professionals. This study introduces and validates a conceptual model aimed at discerning the influence of brand-self connection on luxury consumers willingness to pay (WTP) a price premium. Based on survey data from 270 Chinese luxury consumers and analysis via SPSS 27.0, the results reveal that brand-self connection not only directly augments consumers WTP a price premium but also exerts an indirect influence through the mediating roles of brand experience and brand loyalty. Interestingly, though brand-related social media engagement emerges as a moderating factor in this relationship, its impact remains marginal within the luxury market context. Together, these findings illuminate the complex nuances of luxury consumer behavior, enriching brand management, consumer-brand relationships, and pricing strategy. Practitioners can harness these insights for strategic decision-making in the luxury market arena.

A study on the purchase intention of luxury goods from the perspective of face perception and expected regret.

The study on the impact of consumer purchase intention on luxury goods has received widespread attention from the academic community. This study collected research data in Guilin, China, through questionnaire survey, and conducted an empirical study on the influencing factors of luxury consumers' purchase intention. The results show: The price level of luxury goods has a positive impact on consumers' face perception, while the positive impact of price level on expected regret has not been verified. Consumer's face perception has positive and negative effects on consumers' expected regret and consumers' purchase intention respectively. Consumer's downward expected regret and consumer's upward expected regret have different effects on consumers' purchase intention. Consumers' face perception and expected regret play a mediating effect in the research of influence relationship. This study is conducive to a better analysis of the psychology and behavior of Chinese luxury consumers, enriching the theoretical connotation of consumer psychology, and promoting the healthy development of the luxury goods industry.

Research on the Phenomenon of Modern Luxury Consumption

Along with the fast growth of the Chinese economy, the citys population continues to grow, and as the consumer becomes more mature day by day, the quantity of Chinese luxury consumers has obviously increased. This article analyzes luxury consumption by elaborating on the definition of luxury and the relevant situation of luxury consumption and by expounding on the development of luxury thinking. This paper will use the relevant knowledge of international trade, economics, and statistics to analyze the data collected through journal literature inquiry and network search. The result shows that the irreplaceable qualities of symbols, which might reveal a consumers financial and social position, their expectation of receiving respect, and their capacity to connect with others, affect the level of luxury purchase. As luxury consumption has two sides, the state and government should regulate and control it. From this vantage point, the phenomenon of luxury consumption needs to be fairly and impartially assessed. The study of luxury consumption can guide consumers toward establishing a sustainable and healthy consumption concept.

Unconventional luxury brand collaborations: a new form of luxury consumption among young adults in China

PurposeThis study conceptualizes a form of luxury consumption in which luxury brands collaborate with unconventional non-luxury partners. These unconventional luxury brand collaborations are growing in popularity among Chinese luxury consumers of the post-1990s generation. Luxury brands are exploring new branding strategies due to the growing commercial importance of Chinese luxury consumers. Design/methodology/approachAn in-depth qualitative study informs this paper. Interviews with young adult luxury consumers self-identifying as Chinese reveal a growing interest for luxury brands that collaborate with odd partners in social media and online culture.FindingsUnconventional collaborations between luxury brands and non-luxury partners catalyze shifting meanings of luxury through the following juxtapositions: ephemeral instead of timeless, trendy rather than inaccessible, and playful in contrast with traditional. First, young Chinese consumers construct luxury meanings through ephemerality, like digital possessions, social media fame and fleeting experiences. Second, luxury meanings emerge in trendiness among social media influencers and online culture rather than in the seemingly inaccessible taste regimes of the upper class. Third, younger consumers appreciate fun, rebellious and over-the-top aesthetics in luxury brands.Originality/valueThe study contributes to the nascent field of unconventional luxury by conceptualizing how unusual, odd and unexpected collaborations constitute new forms of luxury consumption. The shifting meanings of luxury consumption that this study conceptualizes raise new opportunities and challenges for luxury brands. One of such is the release of limited collections with non-luxury partners seemingly at the opposite spectrum of design, image and values. Moreover, the study adds nuance to the understanding of luxury consumption among young Chinese consumers.

Research on Why China's Luxury Market Sustained Prosperity Under the Covid-19

In recent years, with the rapid growth of China's economy and the increase of per capita disposable income of consumers, China's luxury consumption market has witnessed rapid development. Under the impact of Covid-19, the luxury market in Europe and the United States showed a downward trend, while the Chinese luxury market continued to be prosperous, which played an important role in the luxury market in this special period. This article will start with the existing psychological theory of luxury consumption, based on China's special cultural and social background, and analyze the specific consumption motivation of Chinese luxury consumers and find out the uniqueness of their consumption motivation compared with that of Western consumers. This paper aims to provide useful references for research in the field of luxury consumption through the analysis of China's luxury market and consumer psychology, and provide theoretical guidance for practitioners in this field, such as luxury marketing teams when actually formulating market strategies

The Marketing Strategies for Chanel to Cater to the Youth Aesthetic

With the development of China's economy and education, more and more young consumers are gradually becoming the mainstream of social consumption. By applying the Marketing mix theory, this paper explores the impact of four factors - price, product, place, and promotion - on Chanel cosmetics and skin care products in the context of a shift towards younger consumer attitudes. Through quantitative analysis of an online questionnaire survey of 142 Chinese luxury consumers, the 4Ps were found to have a positive and direct impact on young consumers’ purchasing behavior and intentions, with price being the main factor influencing young consumers. The relevant results reflect the consumption and aesthetic characteristics of the younger generation of Chinese luxury consumers, and it can be seen that Chanel can use the personalized product design, product sustainability, and male spokesperson as a starting point to further develop, design, and promote its products to attract more young consumers and expand its market share. At the same time, this paper has some limitations as the data does not cover the entire young population.

Antecedents and consequences of online customer experience of Chinese millennials luxury consumers

Antecedents and consequences of online customer experience of Chinese millennials luxury consumers

Exploring materialistic bandwagon behaviour in online fashion consumption: A survey of Chinese luxury consumers

The study examined influencing factors that affect Chinese consumers' attitude towards purchasing foreign luxury fashion goods online. Data were collected in mainland China. A total of 502 respondents were included. Using structural equation modelling, results indicated that materialism, brand consciousness and bandwagon luxury consumption behaviour have a significant effect on intentions to buy foreign luxury fashion products online. In addition, results show that consumer ethnocentrism moderates the relationship between materialism and intentions to buy.These findings provide insight into consumer perceptions of luxury brands and offer managerial implications for companies and marketers to develop and sustain luxury businesses in the Chinese online market.

Determinants of Chinese consumers’ purchase intentions for luxury goods

This study examines the determinants of Chinese consumers’ purchase intentions for luxury goods by applying and extending the Theory of Planned Behavior. Structural equation modeling was conducted based on a random sample of 308 Chinese luxury consumers. The findings revealed that both the subjective norm construct desire to gain face and the perceived behavioral control construct luxury good knowledge had significant and direct influences on consumers’ purchase intentions. Similarly, perceived behavioral control constructs—luxury good knowledge and household income—had significant direct effects on consumers’ luxury goods purchasing behavior. In addition, previous luxury goods purchasing experience also had a direct impact on consumers’ purchase intentions for luxury goods. The results of this study are beneficial not only to researchers by providing a better understanding of Chinese luxury consumers but also to luxury brand retailers by providing implications to help them develop effective marketing strategies in Chinese luxury goods market.

Personal value vs. luxury value: What are Chinese luxury consumers shopping for when buying luxury fashion goods?

This research studies Chinese luxury consumers based on their personal value and explores what dimensions of luxury value Chinese luxury consumers are shopping for when purchasing luxury fashion goods. Three personal value variables (face consciousness, pragmatism, and materialism) and three dimensions of luxury value (symbolic value, experiential value, and functional value) were examined through cluster analysis, ANOVA, and regression analysis based on a random sample of 308 Chinese luxury consumers. The findings suggest that all three dimensions of luxury value have significant impacts on Chinese luxury consumers’ purchase intentions, but different groups of Chinese luxury consumers shop for different dimensions of luxury value.

Chinese Consumers’ Purchase Intentions for Luxury Clothing: A Comparison between Luxury Consumers and Non-Luxury Consumers

ABSTRACTThis study fills the literature gap by examining whether there are significant differences between the luxury clothing purchase intentions of luxury vs. non-luxury Chinese consumers and comparing the influence of the major factors that influence luxury clothing purchase intentions for luxury and non-luxury Chinese consumers. A total of 452 Chinese luxury clothing consumers and 236 Chinese non-luxury clothing consumers participated in the survey of this study. Using t-test, ANCOVA, and regression analyses, this study finds that there are significant distinctions between Chinese luxury consumers’ and non-luxury consumers’ purchase intentions for luxury clothing. The findings also show that significant distinctions exist between the factors that influence Chinese luxury consumers’ and non-luxury consumers’ purchase intentions. This study not only provides researchers with a better understanding of luxury consumers and non-luxury consumers in their purchase intentions for luxury goods but also provides luxury goods manufacturers and retailers with important implications to develop effective marketing strategies in the Chinese luxury goods market.

Heterogeneity of luxury value perception: a generational comparison in China

PurposeDespite the growing research regarding consumer luxury value perception and their influence on luxury consumption behavior in different cultural contexts, there is little research investigating the cultural variation toward luxury within different generations in a given society. The purpose of this paper is to assess the relationships among Confucian propriety, luxury value perception, and purchase intention of luxury brands, and especially how these relationships differ between young and older consumers in a Chinese context.Design/methodology/approachData were collected through a questionnaire survey in China. A multi-group structural equation model was used to test the conceptual model and research hypotheses.FindingsThe results show that the effects of functional value and social value on purchase intention of luxury brands are stronger for older generations than younger ones, while the effects of self-identity and hedonic value on purchase intention are stronger for younger generations than older ones. The Confucian propriety relates positively to the functional value and social value; however, these effects are more salient for older consumers.Originality/valueThe results of this study reveal the evolution of luxury consumption values and behaviors of Chinese consumers, suggesting that marketers should no longer label Chinese luxury consumers with common behaviors. It is also recommended that marketers of luxury brands in China should adapt this shifting attitude and respond actively to the expectations of different generations.

What do Chinese consumers want? A value framework for luxury hotels in China

PurposeIn the past decade, the luxury hotel industry in China has experienced rapid growth. To date, few scholars have investigated what consumers value about their experiences in luxury hotels generally, let alone specifically in the Chinese context. As a result, little is known about what Chinese consumers value in luxury hotel services. To bridge this gap, this paper aims to (1) develop a five-factor luxury hotel value framework from a value co-creation perspective; and (2) assess the relationship between these value dimensions and Chinese consumers’ intentions to stay in luxury hotels.Design/methodology/approachIn total, 492 Chinese luxury hotels consumers participated in the study. A confirmatory factor analysis was used to validate the proposed measurement model, and a hierarchical linear regression was used to test the relationship between luxury hotel value and purchase intentions.FindingsThe authors assessed five dimensions of luxury hotel value in the current study: utilitarian value, symbolic value, hedonic value, relational value and financial value. The regression results indicate that for Chinese luxury consumers, hedonic value is the most important predictor of luxury hotel purchase intentions, followed by financial value and utilitarian value. Interestingly, symbolic value and relational value do not significantly influence Chinese consumers’ luxury hotel purchase intentions.Practical implicationsLuxury hoteliers in China can use the value framework when making decisions about market segmentation and brand positioning and to gain a deeper understanding of what motivates target consumers’ purchase intentions. They can also use such knowledge to tailor their product offerings to the preferences of target consumers.Originality/valueThe current study is the first empirical test of a luxury hotel value framework from a value co-creation perspective in the Chinese market. Taking Chinese luxury consumers’ unique characteristics into consideration, the authors further investigate the relationships between various dimensions of luxury hotel value and Chinese consumers’ purchase intentions.

IT ISNT FOR ME CHINESE YOUNG MALE CONSUMERS INTERPRETATION OF SOCIAL MEDIA LUXURY ADVERTISING

“Today I was persuaded to spend more than $200 on a lotion in Barneys. The price difference (between online and store) is $75. However, the store salesman told me that it is only few dollars way! I felt humiliated by the upscale society.” Lawrence, a 22 years old male Chinese who is an international undergraduate student studying marketing in a public U.S. university, posted the above status on his WeChat moments. With its fast growing economy and huge population, China has become one of the most lucrative markets for luxury brands (Zhan and He 2012). In fact, China has surpassed Japan and become the No.1 luxury products’ spender in the world, accounting more than one-quarter of the global luxury brand expenditure (Yousuf 2012). According to Bian & Company’s study (2016), $ 17.6 billion were spent on Chinese luxury market in 2015. In the past, the core Chinese luxury consumers are female middle-class and up-class consumers (Zhan and He 2012). In recent years, the faces of Chinese luxury consumers have gradually changed: more and more Chinese luxury goods buyers are males, and they actually spend more money on average than women do (Chen, 2016).In addition, the Chinese culture is different from the Western culture (Li, Li and Kambelle 2012). Accordingly, Chinese luxury consumption follows its own patterns and trends, which may not always resemble those of the Western world (Li, Li and Kambelle 2012). Previous studies have revealed unique characteristics of Chinese luxury consumers, in terms of motivations, for example, Mianzi (prestigious face) (Li and Su 2007; Wang and Ahuvia 1998), subcultures (Wang, Sun and Song 2011), public meaning (Wang, Sun and Song 2011), gift giving (Li and Su 2007), and reference groups (Li and Su 2007). All of those studies emphasized the cultural and social dimensions of luxury brands’ consumption.Given these distinctive characteristics of the Chinese market, Western luxury brands have made use of all possible communication methods to connect with Chinese consumers. One of the seemingly promising channels is the Internet. The Internet breaks down geographical and temporal boundaries (Kozinets 1999), and enables Western luxury brands to connect with overseas markets. Among all the digital advertising tools, social media have become increasingly important in the Chinese market (Kim and Ko 2012). In 2015 alone, there were 574 million active mobile social media users in China (Kemp 2015). Due to the large number of social media users, Western luxury brands, like Burberry (Phan, Thomas, and Heine 2011), have started practicing social media advertising (Okonkwo 2009).Accordingly, several challenges emerge. With the rising popularity of social media, Chinese consumers increasingly demand Western luxury brands’ social presence online. Looking at the bright side, social media allows Western luxury brands to show a desirable brand image (Okonkwo 2009; Tynan, McKechnie, and Chhoun 2010) and maintain customer relationship (Kim and Ko 2012). However, concerns about negative consumer comments and their potential impact on brand images (Britten 2013; Macnamara and Zerfass 2012; Singer 2014) loom large. Thus, it remains a question whether and to what extent Western luxury brands embrace the interactive media. Moreover, it is unclear how Chinese consumers perceive their social media advertising effort. In particular, how Chinese young males, the new market segment, interpret luxury brands’ social media advertising presence is an untapped research field. Thus, the purpose of this study is to fill the research gap by exploring how Chinese young male consumers understand and interpret luxury brands’ social media advertising. Given the exploratory nature of the study, a qualitative research approach is adopted (Creswell 2013).

Forms of inconspicuous consumption

Inconspicuous consumption – whereby brand signals are subtle, or not easily visible, to most consumers and the overt display of social status is sidestepped – is on the rise, even in China, which has typically favoured conspicuous brand signalling. Research on luxury brands tends to focus on conspicuous consumption, and few studies have explored the ways in which Chinese consumers use Chinese luxury brands in inconspicuous ways. This study examines how Chinese luxury consumers are redefining their identity projects, as well as their conceptions of luxury, in relation to inconspicuous consumption. We suggest that inconspicuous consumption encompasses consuming luxury products without overtly displaying wealth and social status. Thus, certain luxury brands enable inconspicuous consumption. Turning to a group of Chinese luxury brands offers insights into how luxury brands may fill this role for newly emerging forms of inconspicuous consumption. We distinguish four forms of inconspicuous consumption, illustrated by consumers (1) with wished-for identities or fantasy lifestyles, (2) who appreciate aesthetics and function, (3) who are wealthy and prefer not to provoke envy and/or anger in times of economic austerity and (4) who desire to differentiate themselves and employ subtle signals that are only observable to people with the requisite knowledge to decode their meaning. These forms of inconspicuous consumption facilitate the construction and display of one’s reflective identities, including privately fantasized identity, privately held identity and partially public reflective identities. Thus, we contribute to identity construction theory by explicating aspects of reflective identity and linking them to forms of inconspicuous consumption. Finally, we expand upon recent research on inconspicuous consumption by demonstrating how inconspicuous consumption is manifested in China – the largest luxury market. The results help redefine constructs in the paradoxical situation of inconspicuous consumption of luxury brands, adding a layer of complexity to the inconspicuous consumption concept.

Chinese consumers’ luxury value perceptions – a conceptual model

PurposeThe aim of this paper is to offer a conceptual model that demonstrates Chinese consumers’ value perceptions towards luxury products based on the recent literature reviews and the findings from focus groups.Design/methodology/approachFocus group discussion is used to explore how Chinese consumers construct their value perceptions towards luxury products.FindingsThis research has integrate different perspective values into one multidimensional model to explain directly why Chinese consumers choose to buy luxury products, and what are these variables that influence their luxury value perceptions. It also provides a broader perspective in exploring the Chinese customer‘s self- and societal perceptions for purchasing luxury products.Research limitations/implicationsThe primary data were only collected from three cities; thus, the findings may not be generalisable across all Chinese consumers. Moreover, this qualitative study was based on a relatively small sample size; thus, a future study is planned by designing a measurement instrument based on the proposed conceptual model and also testing the proposed theoretical model that scholars can apply in related empirical work in the future.Originality/valueThis study has offered a wide range of understanding about how Chinese luxury consumers’ luxury value perception reflect their purchasing behaviours and habits; it has also provided a new theoretical insight into the phenomenon of luxury consumption and contributed to the relatively limited literature on the concept of luxury in the context of Chinese market. It could also provide good implications for the effective marketing strategy actions in the context of Chinese luxury market.

The standardization-localization dilemma of brand communications for luxury fashion retailers' internationalization into China

This paper considers the standardization–localization debate within the context of foreign luxury fashion retailers' internationalization into the emerging Chinese marketplace. Luxury retailers must balance a global–local dilemma, given the challenging trading conditions of a complex marketplace with low brand awareness and loyalty, alongside the need to maintain exclusivity and standardization of brand image across all markets. Qualitative data from 22 luxury fashion retailers currently active in the Chinese market provide rich insights that reveal the decision-making process for marketing strategies that support entry into China. Foreign luxury retailers balance the ‘global–local dilemma’ in China firstly by locating operational management control within the strategic hub of Hong Kong, and secondly by implementing far more adaptive and enterprising marketing communications than seen in other mature markets. At the same time, foreign luxury retailers retain tight strategic control of key branding dimensions at head offices in their home markets, as part of a successful long-term luxury brand management strategy. As Chinese luxury consumers increasingly feel part of a global elite, over-localization may cause confusion over brand identity and country of origin (COO). The insights may be strategically useful for luxury retailers entering or expanding in China and also provide indications of future trends of luxury retailing in China and other emerging markets.

Entering the dragon’s nest: exploring Chinese upper-class consumers’ perception of luxury

Purpose – The purpose of this study is to explore the perception of luxury from the perspectives of Chinese upper-class consumers. Design/methodology/approach – Four focus groups, each consisting of six upper-class and experienced luxury consumers, are formed in four cities, Beijing, Shanghai, Guangzhou and Hong Kong, which are among the most affluent, populated and developed in the luxury market. Findings – The findings suggest that Chinese upper-class luxury consumers, indeed, hold different perceptions for luxury in several aspects: price premium is a prestige in contrast to general Chinese consumers’ “value-consciousness”; exclusivity is more valued by the upper-class and experienced consumers; more attention of the upper-class consumers has shifted to individual values from social values; brand value is of high importance; and there exist differences among consumers in different regions. Practical implications – The study suggests that luxury brands should recognize the differences between the upper-class customers who are still the core consumers for luxury goods and the middle-class customers who are growing rapidly while designing their marketing strategies. Originality/value – The study focuses, unprecedentedly, on the upper-class and experienced Chinese luxury consumers who represent the most valuable group of customers of the luxury brands in the Chinese market. Given the peculiarity of customer behavior in the luxury market, such focus provides a brand new perspective without the noises from the inclusion of consumers with insufficient purchasing power and ineligible experience in luxury consumption.