Abstract
The aim of this article is to provide insight into the market for luxury brands in China. A literature review is used to inform an inductive methodology based on an empirical survey of 200 Chinese consumers. The data were collected in a series of street intercept interviews that were completed at various locations in Beijing. The study answers questions regarding what, where, when, how and why Chinese consumers buy luxury goods. The article provides insight into consumer behaviour for marketing practitioners who are either already involved in the large and growing luxury market in China or are considering entering it, as well as providing direction for academics interested in conducting research in the Chinese luxury sector. The article constitutes a contemporary and timely review of the luxury market in China from the Chinese consumer perspective and, as such, makes an original contribution to knowledge in terms of providing insight for practitioners as well as providing guidance for academic researchers.
Similar content being viewed by others
References
Achabou, M.A. and Dekhili, S. (2013) Luxury and sustainable development: Is there a match? Journal of Business Research 66 (10): 1896–1903.
Aiello, G. et al (2009) An international perspective on luxury brand and country-of-origin effect. Brand Management 16 (5/6): 323–337.
Alleres, D. (1990) Luxe – Strategies marketing. In Economica, Vol 1, Paris.
Atsmon, Y., Dixit, V. and Wu, C. (2011) Marketing and sales practice: Tapping China’s luxury-goods market. McKinsey & Company, http://www.asia.udp.cl/informes/2011/china_luxury.pdf, accessed 10 March 2012.
Bain & Company (2010) China luxury market study 2010, http://www.bain.com/Images/China_Luxury_Market_Study_2010.pdf, accessed 10 March 2012.
Bain & Co (2011) China luxury market study, http://www.bain.com/Images/2011%20Bain%20China%20Luxury%20Market%20Study.pdf, accessed 9 November 2012.
Bain & Co (2012) Bain projects global luxury goods market will grow overall by 10% in 2012, though major structural shifts in market emerge. Press release, http://www.bain.com/about/press/press-releases/bain-projects-global-luxury-goods-market-will-grow-ten-percent-in-2012.aspx, accessed 9 November 2012.
BBC (2012) BBC News Q&A: China – Japan islands row, http://www.bbc.co.uk/news/world-asia-paciifc-11341139, accessed 11 September 2012.
Berthon, P.R., Pitt, L.F., Parent, M. and Berthon, J.-P. (2009) Aesthetics and ephemerality: Observing and preserving the luxury brand. California Management Review 52 (1): 45–66.
Blackwell, R.D., Miniard, P.W. and Engell, J.F. (2006) Consumer Behaviour. 10thInternational Student edition. Mason, OH: Thomson South-Western.
Burkitt, L. (2011) Chinese women start to purchase luxury products for themselves. WSJ, http://cn.wsj.com/gb/20110613/bch122202.asp, accessed 28 September 2012.
Chadha, R. and Husband, P. (2011) The Cult of The Luxury Brand: Inside Asia’s Love Affair with Luxury. London: Nicholas Brealey Publishing.
Chevalier, M. and Lu, P. (2010) Luxury China: Market Opportunities and Potential. Singapore: John Wiley & Sons (Asia).
Dall’Olmo Riley, F. and Lacroix, C. (2003) Luxury branding on the internet: Lost opportunity or impossibility? Marketing Intelligence & Planning 21 (2): 96–104.
Davies, I.A., Lee, Z. and Ahonkai, I. (2012) Do consumers care about ethical-luxury? Journal of Business Ethics 106 (1): 37–51.
DeLoach, S.B., Perry-Sizemore, E. and Borg, M.O. (2012) Creating quality undergraduate research programs in economics: How, when, where (and why). American Economist 57 (1): 96–110.
Dion, D. and Arnould, E. (2011) Retail luxury strategy: Assembling charisma through art and magic. Journal of Retailing 87 (4): 502–520.
Dubois, B. and Paternault, C. (1995) Observations: Understanding the world of international luxury brands. Journal of Advertising Research 35 (4): 69–76.
Dubois, B., Laurent, G. and Czellar, S. (2001) Consumer Rapport to Luxury: Analyzing Complex and Ambivalent Attitudes. Report number 736, published by HEC Paris in its series Les Cahiers de Recherche, Ref: RePEc:ebg:heccah:0736, http://ideas.repec.org/p/ebg/heccah/0736.html, accessed 19 December 2012.
Essoussi, L.M. and Zahaf, M. (2009) Exploring the decision-making process of Canadian organic food consumers: Motivations and trust issues. Qualitative Market Research 12 (4): 443–459.
Garner, J. (2005) The Rise of the Chinese Consumer: Theory and Evidence. Chichester, UK: John Wiley & Sons.
Hansen, J. and Wanke, M. (2011) The abstractness of luxury. Journal of Economic Psychology 32 (5): 789–796.
Heine, K. (2011) The concept of luxury brands, http://www.conceptofluxurybrands.com/content/Heine_TheConceptofLuxuryBrands.pdf, accessed 17 March 2012.
Heine, K. and Phan, M. (2011) Trading-up mass-market goods to luxury products. Australasian Marketing Journal 19 (2): 108–114.
Hudders, L., Pandelaere, M. and Vyncke, P. (2013) Consumer meaning making: The meaning of luxury brands in a democratised world. International Journal of Market Research 55 (3): 391–412.
Hurun (2011) Hurun Wealth Report 2011, http://www.hurun.net/hurun/listreleaseen548.aspx, accessed 19 March 2012.
Index Mundi (2011) Country comparison: GDP per capital, available from: http://www.indexmundi.com/g/r.aspx?v=67, accessed 12 March, 2012.
Iqbal, M.Z., Malik, S.A. and Khan, R.A. (2012) Answering the journalistic six on the training needs assessment of pharmaceutical sales representatives. International Journal of Pharmaceutical and Healthcare Marketing 6 (1): 71–96.
Jap, W. (2010) Confucius face culture on Chinese consumer consumption values toward global brands. The Journal of International Management Studies 5 (1): 183–192.
Kapferer, J.N. (1997) Managing luxury brands. Journal of Brand Management 4 (4): 251–260.
Kapferer, J.N. (1998) Why are we seduced by luxury brands? Journal of Brand Management 6 (1): 44–49.
Kapferer, J.N. (2010) The luxury strategy: Break the rules of marketing to build luxury brands, http://www.brand-management.usi.ch/Keynotes/kapferer-Luxury.pdf, accessed 20 March 2012.
Kapferer, J-N. and Bastien, V. (2009) The specificity of luxury management: Turning marketing upside down. Journal of Brand Management 16 (5/6): 311–322.
Kastanakis, M.N. and Brabanis, G. (2012) Between the mass and the class: Antecedents of the ‘bandwagon’ luxury consumption behaviour. Journal of Business Research, Special Issue on Fashion Marketing of Luxury Brands 65 (10): 1399–1407.
Keller, K.L. (2009) Managing the growth trade-off: Challenges and opportunities in luxury branding. Journal of Brand Management 16 (5/6): 290–301.
KPMG (2007) Retail: Luxury brands in China, http://www.kpmg.com.cn/en/virtual_library/Consumer_markets/CM_Luxury_brand.pdf, accessed 15 March 2012.
Kuang-peng, H., Chen, A.H., Peng, N., Hackley, C. and Rungpaka, A.T. (2011) Antecedents of luxury brand purchase intention. The Journal of Product and Brand Management 20 (6): 457–467.
Leung, T.K.P. and Chan, R.Y-K. (2003) Face, favour and positioning – A Chinese power game. European Journal of Marketing 37 (11/12): 1575–1598.
Li, D.N. (2008) Research on Motivation of Luxury Brand Consumption in China. Xiamen, China: Xiamen University.
Li, G., Li, G. and Kambele, Z. (2012) Luxury fashion brand consumers in China: Perceived value, fashion lifestyle, and willingness to pay. Journal of Business Research, Special Issue on Fashion Marketing of Luxury Brands 65 (10): 1516–1522.
Lin, E-Y. (2012) A cross-cultural study of luxury e-branding: Standardization vs. adaptation, product category, and country-of-origin. (Chinese) Marketing Review 9 (1): 91–120.
Liu, F. and Murphy, J. (2007) A qualitative study of Chinese wine consumption and purchasing: Implications for Australian Wines. International Journal of Wine Business Research 19 (2): 98–113.
Lu, P.X. (2008) Elite China: Luxury Consumer Behaviour in China. Singapore: John Wiley & Sons.
McKechnie, S. and Tynan, C. (2010) The Chequered History of a Luxury Brand. Proceedings of Academy of Marketing Conference, July 2010, Coventry.
Monkhouse, L.L., Barnes, B.R. and Ute, S. (2012) The influence of face and group orientation on the perception of luxury goods. International Marketing Review 29 (6): 647–672.
National Bureau of Statistics (2011) China Statistical Yearbook, http://www.stats.gov.cn/tjsj/ndsj/2011/indexch.htm, accessed 14 April 2012.
Ni, V. (2012) Consumption trends and targeting China’s female consumers, China-briefing, http://www.china-briefing.com/news/2012/03/08/consumption-trends-and-targeting-chinas-female-consumer.html, accessed 15 March 2012.
Nueno, J.L. and Quelch, J. (1998) The mass marketing of luxury. Business Horizons 41 (6): 61–69.
O’Cass, A. and Choy, E. (2008) Studying Chinese generation Y consumers’ involvement in fashion clothing and perceived brand status. The Journal of Product and Brand Management 17 (5): 341–352.
Okonkwo, U. (2009a) The luxury brand strategy challenge. Guest editorial Journal of Brand Management 16 (5/6): 287–289.
Okonkwo, U. (2009b) Sustaining the luxury brand on the internet. Brand Management 16 (5/6): 302–310.
Oxford English Dictionary (2012) Luxury, http://www.oed.com//view/Entry/111515?redirectedFrom=luxury&print, accessed 14 November 2012.
Phau, I. and Prendergast, G. (2000) Consuming luxury brands: The relevance of the rarity principle. Journal of Brand Management 8 (2): 122–38.
Phau, I. and Yip, S.L. (2008) Attitudes toward domestic and foreign luxury brand apparel: A comparison between status and non-status seeking teenagers. Journal of Fashion Marketing and Management 12 (1): 68–89.
Phau, I. and Teah, M. (2009) Devil wears (counterfeit) Prada: A study of antecedents and outcomes of attitudes towards counterfeits of luxury brands. The Journal of Consumer Marketing 26 (1): 15–27.
Qian, W., Razzaque, M.A. and Keng, K.A. (2007) Chinese cultural values and gift-giving behaviour. Journal of Consumer Marketing 24 (4): 214–228.
Reddy, M., Terblanche, N., Pitt, L. and Parent, M. (2009) How far can luxury brands travel? Avoiding the pitfalls of luxury brand extension. Business Horizons 52 (2): 187–197.
Reyneke, M., Berthon, P.R., Pitt, L.F. and Parent, M. (2011) Luxury wine brands as gifts: Ontological and aesthetic perspectives. International Journal of Wine Business Research 23 (3): 258–270.
Ryan, J. (2012) Education and culture. In: C. Ogden (ed.) Routledge Handbook of China’s Governance and Domestic Politics, Chapter 7. London: Routledge.
Shukla, P. (2010) Defining luxury: The conundrum of perspectives. Luxury Society: Opinions, http://luxurysociety.com/articles/2010/05/defining-luxury-the-conundrum-of-perspectives, accessed 8 March 2012.
Shukla, P. and Purani, K. (2012) Comparing the importance of luxury value perceptions in cross-national contexts. Journal of Business Research, Special Issue on Fashion Marketing of Luxury Brands 65 (10): 1417–1424.
Silverstein, M. and Fiske, N. (2008) Trading up: Why Consumers Want New Luxury Goods – And How Companies Create Them, 3rd edn. with John Butman London: Portfolio, Penguin Books.
Somogyi, S., Li, E., Johnson, T., Bruwer, J. and Bastian, S. (2011) The underlying motivations of Chinese wine consumer behaviour. Asia Pacific Journal of Marketing and Logistics 23 (4): 473–485.
Thompson, M. (2011) Chinese hedonic values and the Chinese classical virtues: Managing the tension. The Journal of Management Development 30 (7/8): 709–723.
Truong, Y., McColl, R. and Kitchen, P.J. (2009) New luxury brand positioning and the emergence of masstige brands. Journal of Brand Management 16 (5/6): 375–382.
Turk, B., Scholz, M. and Berresheim, P. (2012) Measuring service quality in online luxury goods retailing. Journal of Electronic Commerce Research 13 (1): 88–103.
Tynan, C., McKechnie, S. and Chhuon, C. (2010) Co-creating value for luxury brands. Journal of Business Research 63 (11): 1156–1163.
Veblen, T.B. (1899) The Theory of the Leisure Class. Boston, MA: Houghton Mifflin.
Vickers, J.S. and Renand, F. (2003) The marketing of luxury goods: An exploratory study. The Marketing Review 3 (4): 459–478.
Vigneron, F. and Johnson, L.W. (2004) Measuring perceptions of brand luxury. Journal of Brand Management 11 (6): 484–506.
Wan, W.W.N., Luk, C.-L., Yau, O.H.M., Tse, A.C.B., Sin, L.Y.M., Kwong, K.K. and Chow, R.P.M. (2009) Do traditional Chinese cultural values nourish a market for pirated CDs? Journal of Business Ethics 88 (Supplement 1): 185–196.
West, C. (1999) Marketing Research. MacMillan Business Masters. Basingstoke, Hampshire: Palgrave Macmillan.
Wong, N.Y. and Ahuvia, A.C. (1998) Personal taste and family face: Luxury consumption in Confucian and Western societies. Psychology and Marketing 15 (5): 423–441.
Zhan, L. and He, Y. (2012) Understanding luxury consumption in China: Consumer perceptions of best-known brands. Journal of Business Research, Special Issue on Fashion Marketing of Luxury Brands 65 (10): 1452–1460.
Author information
Authors and Affiliations
Additional information
2was a student at Harper Adams University and graduated with a degree in International Business Management.
Rights and permissions
About this article
Cite this article
Walley, K., Li, C. The market for luxury brands in China: Insight based on a study of consumer’s perceptions in Beijing. J Brand Manag 22, 246–260 (2015). https://doi.org/10.1057/bm.2013.29
Received:
Revised:
Published:
Issue Date:
DOI: https://doi.org/10.1057/bm.2013.29