Topic: Luxury values in the UK and Chinese fashion market about creativity goods: A cross-cultural study CHAPTER 1 INTRODUCTION 1.1 Research Background In many parts of the world, in traditional markets such as France, Italy and North America, luxury consumption has decreased. McKinsey and Company’s report released that luxury sales within Europe were estimated to have increased to eight percent and the US went down to sixteen percent and even when the biggest luxury market i:e Japan, has faced a drastic decline (McKinsey and Company, 2012). By contrast, the company pointed out that over recent decades, with the strong economic growth and global trade policies change, luxury consumption has still grown dramatically in China. It was reported that in December 2015, China accounted for about twenty percent of global luxury sales in 2015. According to new research, by 2020 it will grow to 44 percent and will replace Japan to become the world's largest luxury market. The market for luxury goods and services has been growing significantly and consistently since the early 1990s, and one result has been considerable academic research interest in luxury consumption. In the literature, this particular form of purchasing behaviour has been linked to the self-concept, with a large body of evidence for the link having been generated also selling of the luxury goods within the market has been able to ensure that the country is performing well when it comes to how it generates its revenue. The Luxury products are the one responsible for the substantial growth of the revenue collected within the country as more people will go for the luxury goods.
In Western countries, the majority of luxury consumers are senior, which is contrasted with the Chinese market counterpart customers aged between 25-35 are the top spenders reported that the average age of consumers is 25 years younger than Americans and 15 years younger than Europeans. In fact, luxury consumption motivation is heterogeneous across different generations. It is generally agreed that marketing campaigns developed for Western markets may not be appropriate for consumers living in Eastern cultures, particularly with respect to strategies for promoting luxury brands. While consultancy reports and media commentaries show that rising levels of disposable income are driving increasing demand for luxury goods in China and UK. The study reported in this paper shows the consumption of luxury products in china and the UK, with particular reference to the fashion sector. The study contributes to existing knowledge by evaluating differences and similarities in: first, the luxury-fashion purchasing behaviour of people of china and the UK, and second, the ways in which the two sets of consumers use luxury fashion products as an extension of their selves.
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- Spring '16
- Mr. Kemoni
- Luxury good, Luxury vehicle