Luxury Goods Consumption in Chinese Culture Essay

Introduction

Utilization of luxurious products can bring about three key concerns: the appearance of socio-cultural class, the establishment of personality, and the maintainability of personality (Vickers & Renand 2003). For a number of people consumption of luxurious goods is one of their rights and their method to maintain exceptionality and supremacy from the other people in the community. Wattanasuwan (2005), comments that it does not essentially imply that the consumption of a luxury good matches one’s class, however it does demonstrate its worth, financial-wise.

Researchers tried to explain the phrase luxury goods through aiming at three key interlinked viewpoints: financial, emotional and promotion (Chadha & Husband 2006). Scholars from the three areas have their personal methodologies when investigating the subject. Scholars from the financial field tend to focus on the descriptions of luxury; while the scholars in psychological and promotion concentrate on user insights (Ahmed et al. 2002).

Although the plentiful knowledge attained via various researches on the topic by various fields of professionals, articulate descriptions of the creation of luxury brands are still missing (Vickers & Renand 2003). Chadha and Husband (2006) utilized the “individual vs. Non individual” plan to help in defining luxury in an assessable way. In spite of the contribution made by Chadha and Husband, the entire concept of luxury still remains unsteady, because of the impact made by the alterations across traditions and time.

The majority of the literature concerning luxury product are perceived to be interlinked and mutually dependent since they are mainly aimed at the promotion of luxury brands. In addition, another factor behind the close relationship of the literature is that the initial researches have been the basic stratum which latest researches are based on (Mortelmans 2005).

The initial section of this literature check provides an exhaustive description of luxury idea. Then followed by a discussion of diverse researchers’ trials of classifying different measures that define luxury user’s view of a luxury brand, together with examining particularly Chinese users perception on luxury utilization and finally the impact of culture and place of production will in addition be studied here.

Defining luxury idea

Because of the variability of the idea, various individuals describe luxury in various ways. Ronand defined luxury goods as stylish and high quality products made by presumed luxury companies (Vickers & Renand 2003). This description is valuable by the integration of an array of goods like garments and leather products where such items are generally available and perceived as luxury goods (Ahmed et al. 2002).

However, Vickers and Renand’s definition turns out to be restricted when other luxury goods, like wine, cars, cosmetics, which are as well, considered to be generally available and perceived as luxury goods. It is reasonable in saying that the 21^st century is a key time of acquisitiveness in history. People face the word luxury often throughout their daily lives despite the types. It gradually places itself in a manner that the community adjusts its survival in a better way.

Most researchers concur that describing the word is relatively difficult and that the view of the luxury idea brings in diverse types and depends on two key topics: the society and context involved (Ahmed et al. 2002). Arora (2005) focused on explaining the difficulty to define the word, arguing that human contribution, unavailability, and appreciation of value are the key components (Vickers & Renand 2003). As a result, luxury is frequently regarded to be a one-sided subject.

Defining a luxury good

Scholars and luxury experts are still uncertain to come to terms to a covering one because of its bias. What is luxury to some people may simply be natural to others; this variation increases uncertainty to the assignment to conceptualize luxury. The initial scholarly research on this subject was introduced in the time that a fresh financial status, the “luxury status”, started as a class of rich users in the U.S (Vickers & Renand 2003).

Wattanasuwan (2005) has classified the key perspectives from the studies of luxury goods. Ahmed et al. (2002) researched widely on the financial factors; while Arora (2005) as well as Chadha and Husband (2006) put their major concentration on the promotion element. An emotional concept was embraced by researchers like Mortelmans (2005), and Vickers and Renand (2003). Other fields were as well researched by a minority group of scholars like socio-demographic aspects, culture, representative worth and user view (Arora 2005).

Why consumers purchase luxury goods?

It is a reality that a majority of individuals in our community cannot pay for luxury goods. Financially, luxury goods are costly, and not essentially realistic. However, it is no longer limited to the top or middle income people. The production of luxury goods is now expanding to and focusing on the lower income earners as well. So what is the reason that a person wants to purchase luxury items? What does luxury imply in his or her viewpoint? What persuades him or her in having this behaviour?

Luxury item as an image

As explained in the previous section what luxury brands are, they are viewed as a message or an image to show people’s socio-economic position. Due to their value, the consumption of luxury products usually symbolizes the consumer’s financial position. Furthermore, it is common that a person just judges other people based on his or her views. Mortelmans (2005) argues that one’s image, sex, intonation or business conveys a direct and strong picture to the perceivers.

As a result, individuals begin to utilize such luxurious items as an exhibit of socio-economic position and their capabilities of affording these goods; such people have an idea that the more they earn, the upper viewed socio-economic position they can attain (Mortelmans 2005). Ahmed et al. (2002) concluded that the purpose to consume luxury items is mainly for their social status.

Motivation

It is assumed that a person’s aspiration can be a powerful motivation. Vigneron and Johnson proposed that inspiration is the thrust within a person that results in his or her action (Vigneron & Johnson 2004). In this case, the driving force for his or her action to go for luxury products is his or her unsatisfied needs. Ahmed et al. (2002) suggested that luxury items act as an instrument of satisfying his or her desires. Purchasing with a view of impressing people was the traditional purpose to buy luxury items. However, new researches indicated that individual perception has been integrated into utilization and it has been slowly expanding globally (Han & Nunes 2010).

The Chinese culture

Cultural aspects play an important task to define luxury utilization behaviours among Asian users. It must be dealt with carefully when integrated into the research. Because of the cultural variations, it is evident that Chinese consumers buy luxury items for various reasons (Mortelmans 2005). Arora utilized Hofstede’s concept on cultural aspect of China, which is extremely aggressive and spirited (Arora 2005), in suggesting that China has a powerful culture. Consequently, Arora found that the exclusive cultural aspects of China enhance luxury utilization to be based on compliance, group development, and socio-economic reasons (Arora 2005).

The Chinese consumer purchasing behaviours are highly determined by Confucian attributes: cooperativeness and family esteem and supremacy, and understanding of shame and fame. Family and cooperativeness is a major impact on personal attribute in China.

For instance, in his study on socio-economic interaction trends, Mortelmans (2005) discovered the Chinese to emphasize melodious relationships among group participants, while Americans aimed to express the hidden personality by satisfying individual desires. That is why consumers in China attach more significance to the brand than on the product itself. The more popular and costly the product, the more credit Chinese people get.

Vigneron and Johnson discovered that a nation’s growth influences the magnitude of luxury utilization (Vigneron & Johnson 2004). Alternatively, the recognition of luxury items reveals the development of a country. China has been developing quickly intrinsically in addition to extrinsically, particularly the appearance of the mid-class which has a powerful buying control. According to Vigneron and Johnson’s “luxury growth”, they commented that Chinese buy luxury items for noticeable reasons. This finding as well supports Danziger’s premise, which proposed that a nation’s growth influences the inspiration to purchase luxury items (Danziger 2005).

Conclusion

Consumer attributes themselves are an intricate subject; it is more complex in examining the consequence of utilization towards luxury items because of a broad range of aspects involved. This paper reviewed the concerns and challenges that have been identified by investigators on luxury items. From this section major aspects behind luxury utilization in China have been determined.

References

Ahmed, G, Johnson, J, Ling, C, Fang, T & Hui, K 2002, ‘Country-of-origin and brand effects on consumers’ evaluation of cruise lines’, International Marketing Review, vol. 19 no. 2, pp. 279-302.

Arora, R 2005, China’s generation Y bucks tradition: youngest Chinese reject Confucian work ethic, embrace west. Web.

Chadha, R & Husband, P 2006, The cult of luxury brand: inside Asia’s love affair with luxury, Nicholas Brealey International, London.

Danziger, P 2005, Let them eat cak: marketing luxury to the masses as well as the classes, Dearborn Trade Publishing, Chicago.

Han, Y & Nunes, J 2010, ‘Signalling status with luxury goods: the role of brand prominence’, Journal of Marketing, vol. 74 no. 4, p. 15.

Mortelmans, D 2005, ‘Sign values in processes of distinction: the concept of luxury’, Semiotic, vol. 157 no. 1, pp. 497-520.

Vickers, J & Renand, F 2003, ‘The marketing of luxury goods’, The Marketing Review, vol. 3 no. 8, pp. 459-478.

Vigneron, F & Johnson, L 2004, ‘Measuring perceptions of brand luxury’, Journal of Brand Management, vol. 11 no. 6, pp. 484-506.

Wattanasuwan, K 2005, ‘The self and symbolic’, Consumption Journal of American Academy of Business Cambridge, vol. 6 no. 2, pp. 179-158.