China as a market: Luxury brand consumer behavior

According to theory, luxury consumers are the same all over the word, representing a global segment. However, depending on the cultural context, consumer behavior may differ in this worldwide segment. In fact, cultural distance still matters in global markets (Ghemawatt 2001, 2007), and research on the relationship between culture and consumption is growing exponentially (Ogden, Ogden J. and Schau 2004). Based on a review of specialized literature, the purpose of this paper is to explore how culture influences consumer behavior in the Chinese luxury market. To achieve this objective, the author has carried out a review of the literature and an exploratory study using written questionnaires. The respondents were 140 full-time and part-time MBA students in the Beijing International MBA program (Peking University - China). In this paper the author presents the preliminary results of this study and introduces the next steps of the research. According to these results, the first implication for companies revolves around the complexity of this market, consisting simultaneously of an immature and a mature market. In fact, attitudes towards luxury products vary widely in China depending on the various social and geographical segments that make up this market. The age of buyers is also changing. The traditional Chinese luxury shopper is a middle-aged individual who holds a top management position, famous people and public figures. But luxury shoppers are also educated, young, and white-collar workers who save to splurge.