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Essay / Chinese Luxury Market - 900
In 2005, Ernest & Young released a report on the Chinese luxury market stating that China has become the world's third largest consumer of fashion, accessories and other luxury goods high-end and represents approximately 12%. of global sales (Young, 2005). Along with other similar reports on the meteoric growth of the Chinese economy and the luxury market in particular, many luxury brands from Western countries like France, Italy and the United Kingdom have already tapped into the market , while those who have not yet done so have plans for it and are starting to do so. Although many reports have highlighted the importance of Chinese consumption of luxury goods, large disparities exist; some say that China represents 12% of global sales, others say 8% (Young, 2005; Movius, 2005). According to Zhu and Wang (2005), although there are inconsistencies in the data, most reports come to the same conclusion that China is the third largest luxury market and is expected to grow and become the first in 2015 (Sachs, 2005) with the amount of its sales. the number of consumers increased from 175 million to 250 million in 2015 (Young, 2005). The future of the Chinese luxury market is undoubtedly bright, but it is important to realize that the current market is actually smaller than imagined and its size is still limited, only 3% of global sales took place in China, while more than half of total sales took place overseas (Movius, 2005). Luxury brands that have heavily focused on emerging markets due to the continued growth of the luxury industry should be aware of this and therefore develop a responsive marketing strategy instead of transferring the same traditional strategy from the Western world (ChinaDaily, 2011). As the market is far from mature (Anestis and ...... middle of paper ...... e hand, this could preserve the brand identity and maintain a similar quality of service; however, they have ignored an important need of their customers, which is personalization (Okonkwo, 2007 Although several studies have examined how cultures affect consumer behavior in China, none have adequately compared it with others). other countries. Invalid Source Specified Additionally, most have looked at the issue from the customer's perspective by analyzing the motivation behind huge consumption (Wong & Ahuvia, 1998) Invalid Source Specified (Gao, Norton, Zhang et. To, 2009). Only a few have evaluated established marketing strategies with cultural analysis, those who have done so have focused only on segmentation and positioningInvalid source specified.. In this essay, the point of view. luxury brands will be used to analyze the influence of culture on the existing marketing mix..