Luxury Consumption In China

The main target of this research is to analyze the main characteristics of the Chinese consumptions in the Luxury Market of greater China in order to produce a prediction of this sector in the following years.In this study is analyzed the luxury market not on the basis of the cultural behavior but rather as one of the many sectors in the market.In order to produce a correct model, the study defines the characteristics of the consumers, namely the Chinese households, and the characteristics of the luxury market in China.In the first part, the author describes the macroeconomic characteristics of urban households, and why we examine urban households instead of individuals. In the second part, we introduce the consumption and income level for urbanhouseholds. We divided them by income group. Also is explained how we dived their consumption of goods and services. We use this part to explain consumption theories, purchasing by prioritizing strategy, and utilizing Engel’s curve.Then a third part is focused on the luxury market, its main characteristics and how Chinese customers behave in the society (and how it is reflecting in the market).The fourth part is the one where we collect the previous elements which bring us to the model of the study, to study cases and to the final results.In the conclusion the researcher comments its results and additional consideration.