Millennials Consumer Behavior in China (Dissertation Sample)

Millennials Consumer Behavior in China Name Institution Millennials Consumer Behavior in China Abstract In modern ages, China has begun to share a huge place in the world's luxury market. However, the Tier 1 luxury goods today are majorly from the Western countries. If a variety of favorite brands enjoy the greatest share of market success in China, then a question arises, what attitude do shoppers have to the Chinese superfluity products? Therefore, this paper aims at investigating consumer's insight on luxury goods in China. The incredible advancement of Asian countries specifically China is discussed, the developing market position transformed to be the greatest target for prominent global luxury item manufacturers indicating changing signals in the global economy. China is currently the second biggest luxury market in the world (Sun et al., 2014, p. 578). The study also examines the effects of traditional cultural values in influencing the purchase of luxury goods. The objective of this thesis is also to determine the consumer behavior of millennials in China. The behavior of these consumers is dynamic, motivated by factors such as social status, trends in the market, social media coverages as well as celebrities in Asia. Chinese consumption of luxury items is traced back during the Confucian period; these precious traditional artifacts are available in many museums around the world. The role, as well as importance placed on possession and consumption of materialism by consumers, is a vital area of study for marketers (Kamal et al., 2013, p. 27). The study of the behavior of consumers in Millennials era is critical and will provide plans for dealers during the marketing of luxury items in China. To get information for this quantitative dissertation methodology using survey questionnaires and qualitative approach through interviews was conducted. An online survey company () was exploited to circulate the questionnaire part of the research. A face to face interview with the store brand managers in China to determine the consumer behaviors. The brand retailers from where the interview was performed, with Saint Laurent Paris Chinese Manager and the other was held with the Gucci Chinese Supervisor. Consequently the research also provides a broad review of existing literature together with qualitative primary research (Methodologies, Results as well as Analysis). The research provides conclusions and recommendations important to luxury marketers and other endeavoring individuals to succeed in China at the end. 1.0 INTRODUCTION 1 Rationale Background Millennials refers to those population of individuals born between the year 1977 and 1996; they are now getting into the age when they are in progress of creating families. Following the prior research on this millennials group, co-authors Fromm (present, FutureCast; co-author: Marketing to Millennials) and Vidler (founder, Clear Box Insights) took a reflection at the millennials with kids to see the difference from their colleagues without children (Nelson, 2015 p. 107). The two authors' postulates that those with the kids are more realistic than their counterparts with no children. As a result, this generation offers a radically different test for marketers. Jeff Fromm also states that shopping of the millennials group is not only for living but also habit as well as an attitude when they do it. The global financial crisis is underway, and the depression effect also impacts on world's luxury commodity market. Nonetheless, there is an entirely different case in China with the rapid growth of the domestic economy, some Chinese display the capability and desire to purchase luxury goods. In 2012, Chinese luxury commodity consumption accounted for a third of global luxury sales which was estimated to be the greatest among the countries of the world. With the outburst of modern population development in China and significance appearance of wealthier societies, the consumers of these goods are reported to have significant demand for luxury goods such as shoes (Klupś-Orłowska, 2013, p. 140). Therefore, luxury brands in China have become a symbol of social prestige as well as uniqueness. The rich in China are yearning for luxury items; they purchase goods to maintain their individual superiority and to show-off, they don't just have money but also better taste than the other citizens. For the case of middle-class white-collar workers to purchase a luxury branded commodity might consume a several month wage savings, but because of particular fascination for luxury merchandise and craving for recognition as elites in a modest society motivates them to make savings within few months to purchase a piece of the luxury dream. Communication manager of Chanel in China approximates that over 80 percent of the well-known international luxury brands have opened up supplies in China and have enjoyed most success over the last few decades. In the recent years, many luxury retailers have begun to discharge affordable items to attract more shoppers to advance to small and medium-sized towns in China. In 1990, during a long-lasting process of pursuing new markets, most international luxury branded goods begun instituting themselves in China. A study conducted in 2003 by Ipsos approximated 8 percent of the global Chinese residents could be possible consumers for imported luxury commodities based on their returns and individual wealth. In 2003, the market value of luxury items in China was approximated at 2 billion US dollars, the largest growth rate for this sector worldwide (China Daily, 2004). Consumption behavior of Chinese millennial is diversified into a nation and classified by tiers. Understanding and realizing the distinct sections and its shades is essential for luxury fashion firms that hope to aim millennial consumer spending in China. China is facing a challenge whereby the foreign brands have mastered the market, the local products are, therefore, trying to fight their way to the top of Chinese luxury items (Swoboda et al., 2012, p. 72). Nonetheless, their brands are still below average with well-known goods imported into the market (Wei Shi & Ming, 2015, p. 932). The reason behind the achievement of imported luxury brands among the elite is because there is no real designed in China for luxury product though a number of factories are making products for the world's brands (Ying & Yiping, 2013, p. 173). The dissertation seeks to establish consumer behavior of China millennial consumers concerning luxury fashion. The paper also discusses the one child policy and its effects on its initiation in China to reduce the population growth. One child policy established in China affect a large number of luxury consumers. Millennial consumption was spoilt, and they incline towards self-centered and to have self-worth evaluating the possible luxury market to involve the generation. 2 Aim To examine if Chinese millennials is a possible active group as target consumer to luxury market in China regarding buying outlooks, culture as well as opportunities for the future sales. 3 Objective 1 To evaluate Chinese luxury market during previous and present conditions. 2 To examine Chinese consumer behavior model 3 To examine the ever-changing habit of consumer behavior in luxury markets during the primary research to explore millennial consumerism in China. 4 To appreciate the factors influencing the millennial individuals response to luxury style of life. 5 To provide recommendations based on my key findings and for further research on this area. 4 Methodology A comprehensive description of the methodology, the justification for the methods of data collection and analysis as well as the procedure in Chapter 3 of this dissertation. The secondary research gives a full and detailed description of the literature review. The literature review was undertaken to gain information on prevailing academic and business research that have established the generational characteristics of millennials, outlook of Chinese culture and the reactions of millennials consumers in China. A full range of commercial investigations, journals, industry press articles as well as researches and scholarly books provided for the research. Theoretical frameworks provided for this study, the preferred outline of the literature derived from marketing as well as retail texts and journals to give detailed research. In addition, the literatures are also used to examine further factors influencing how consumers respond to the luxury lifestyle. However, the primary research considered different aspects, survey and interviews were carried out to meet the objectives of the study. Furthermore, it was used to determine more in the depth of the Chinese population towards customers purchasing behavior for luxury fashion products. Consequently, to authenticate the data, the research was performed in accordance with academic theory regarding the procedure. 5 Chapter Outline Chapter 2: Literature review. Explores the millennial generational behavior as a whole through the main theories and models related to the millennial. The acquisition of the concept helps the researcher to determine the core outlook of the millennial about the Chinese millennial attitude. Chapter 3: The chapter also draws how luxuriously fashioned companies operate in China and how Chinese millennial attitude respond to luxury products. The section also makes a conclusion on the topic by focusing on Chinese millennial purchasing power towards luxury goods. Chapter 4: establishes a detailed and fully updated overview of the methodology that was used to accomplish the goals of the project. Chapter 5: Analysis and discussions of the focus groups and analyzing the findings in contrast to academic literature satisfactory to ...