With the rising of our living standard, people’s requirement of commodity has been heightened accordingly. For last few years, a tide of luxury consumption emerges and is on the rise and will continue to be a key area to watch.
Factors of luxury consumption
Different cultural patterns of East and West lead to diverse perspectives of luxury consumption. For instance, the choice of the shower gel is different between Europe and Asia. Most of consumers in Europe choose Fa or Clairol which have function like fragrances or herbal could make consumers have indulgent experience and enjoy the joy of showering. In contrary, Chinese consumer prefer Dove or Olay which like moisturizing cream good for skin.
However, luxury consumption is always connected with motivation of flaunt which is a majority view what most people believe. There are two types motivation. The first one is “saving face”. In China, it is significance for keeping face, even sometimes face is more important than life itself. So the luxury product could enhance and maintain the face which relate the symbolic values of status and prestige weave.
Some people believe that gift is a reflection of how much a relationship meant to you and it will greatly affect the way people judge about you. Therefore, gift has been identified as another motive. In other words, expensive gifts helpful to gain more recognition, obtain more “face” and achieve better relationship which benefit them whether in work or life.
The trend of new luxury consumer
With the steady growth of the economy, more and more people focus on the luxury products. Meanwhile, due to the societal shifts such as fight corruption of gift giving the consumer base has changed. There are several aspect of this change.
In the past, the luxury consumers are ultra-rich. However, they are no longer the only consumer for the luxury products. Middle class consumers join this market. A.T. Kearney’s luxury consumer survey show that 15% of US luxury brand consumers are middle class consumers which means the annual household income is less than $ 60K. Nowadays even if they can not afford very expensive product they still can purchase what they get such as $300 clutch.
Compare with before, younger consumers have been targeted for majority of luxury marketers. According to the survey, Fendi, Tory Burch and John Varvatos show the consumers under 35 which account for nearly 50%. Pam Danziger, the president of Unity Marketing pointed that the demand of luxury product and service for young affluent are more than matures which are 45 years older and the spend on luxury products is more 50% than mature affluents. The recent survey showed that it is necessary for luxury marketer to build a relationship with young affluent who are more willing purchase the luxury brand products.
As you know, loving beauty is a woman’s nature. Therefore, they use clothing and fashion like High-end luxury goods, perfumes, clothes, cosmetics, accessories and much more to improve their attractiveness. But now, the situation have changed. In Chinese luxury market, the luxury products that men purchase are more than women do. They tend to focus on visual portrayal of their achievement rather than female. So in order to smooth business transactions, personal grooming play an important role. In the US, the development of menswear is faster than women’s clothing.
The segmentation of luxury consumer
According to the personality, lifestyle and luxury attitude, there are 8 type of luxury global segmentation: absolute luxury, megacity, socialwearer, experiencer, Littleprice, fashionista, Status seeker, classpirational.
By: Dandan Liu 214353927
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