The Research Of China's Luxury Goods Marketing

China has becoming a dramatic economic power of the world in the last few years. Dozens of foreign luxury goods companies have been drawn the eyeball and appealed to step into the Chinese market. As a matter of fact, China is now the world's third biggest luxury goods consuming country, the market prospect is still looking good. But for some historical reasons, Chinese people still know little about the luxury goods including Chinese academic community. The relative researches in this field are poorly scarce. The luxury goods can be called as a real"new"stuff in China. Chinese companies have no experience on how to operate a luxury goods company, how to do the marketing, especially don't know how to raise and deal with a luxury brand and enlarge the brand's inner-culture. Thereof, it means a lot to systematically analyze the way foreign companies doing the marketing works and research the consuming market of Chinese luxury goods in the hopes to give instructions to the local companies which want to start their own luxury business in China.The essay mainly focused on Chinese local companies. First of all, it defined the concept of luxury goods. After stating several perspectives by former scholars the paper concluded that luxury goods are a kind of merchandise which is far beyond people's basic physical needs and have the features as unique, scarce, and rare. This concept is comprised of five aspects. Then the essay established seven traits of luxury goods, they are outstanding personality, extremely high price, flawless quality, limited quantity, consistent brand, hard to obtain and meet the psychological needs.The second part of this article developed a structure of customer purchase behaviors for luxury goods. In this part, the customers are grouped according to their dispensable incomes into two segments: the upper class people and mid-class people. In addition, as it has been well known that young people take a substantial big part of the customers, their purchase could be motivated by flaunt, imitation, and worship combined. Further, the age of individual is another influencing factor for customer purchase.The third part turned back to the domestic luxury market which is believed to be of enormous latent demands. At current stage, this market now is morel likely in its infancy, as most customers are not rationale. Then the article discussed the development of domestic companies and identified several relevant issues. Until now, there is not a single domestic brand which could compete equally with those foreign brands. The reasons are attributed to many: historical reason, customer cognition, the lack of industry background, ineffective brand management, quality of product, and low efficient marketing strategy.In the fourth part, the essay analyzed how foreign companies do the luxury goods marketing comprehensively. The key factor for a luxury company to walk towards the success is grasping human's psychological needs and wants. Take good use of the theory of scarcity can lead to the effective marketing. The essay offers four available ways of putting the theory of scarcity into reality, which are naturally scarcity, technically scarcity, limited editions, and visual scarcity.There is no other option besides pursuing excellence on the companies` product strategy. The luxury goods should appear as perfect designed, well packaged, highly emotion oriented, and limited produced.Brand management is the core function of the marketing. Every successful company sees the brand as the most valuable fortune. They tend to raise the value of the brand with the following methods: telling the story of the brand; decorate the brand with culture; set close relationships with royal members and celebrities.The luxury enterprises always pay huge attention to the customer relationship management. A healthy CRM can raise the public's impression of the brand and absorb more loyal customers.Price is what people would like to talk about mostly. The luxury pricing strategy is basically aiming high. Companies are not setting the price of the products, but setting the price of customers` dreams. Luxury goods'competence is not laying on the price, the case is the higher price always results in more sales. Sometimes luxury companies would offer slight discount on their products, but we would not attribute it as a promotion, they seem to just hope to clear the leftovers.Luxury companies usually sell their products through places like flagship shops, franchised stores, shoppes and massive exhibitions. In special, the flagship shops play an extremely important role in the place strategy. It is not just a selling channel but a bridge which combines the brand and the market.The promotion strategy should basically follow the rule"drag only, but no pull". The luxury goods always show up its noble and elegant status, meanwhile never lose the chance to establish an intimate relationship with the customers.In the last part, the essay concluded five suggestions on luxury marketing for the Chinese local companies based on the current situation of Chinese market which are keep learning from the foreign companies and focusing on the Chinese market; choose the appropriate strategy which fits the company best; develop products with high quality and excellent design; create own luxury brand; train professional local managers; keep innovating.