Research On Marketing Strategies Of Luxury Goods In The Chinese Market

Despite the weak global economy, the rise of China has received ever increasingattention. The new way of consumption and the faster-paced transactions pushed byChinese consumers, seem to have rewritten the rules of luxury competition. Chinamarket becomes increasingly important as revealed by the shift in the strategic centerof gravity and changes of marketing strategies applied by multinational luxurycompanies. With the development of China’s economy, the stable rise of urbanizationrate, and the presence of mature consumers, will all help to increase the level ofconsumption and promote development of the industry. As the product of fivethousand years’ history and civilization, the indigenous luxury didn’t develop a trulyluxury brand. While marketing strategy plays an important role in the brandmanagement, it is vital to dig out marketing strategies that conforms to China’s actualconditions, when indigenous luxury brand are trying to lead the way in buildingconsumer brand preferences and associated purchase behavior. Therefore, this paperpropose the research topic of discussing the marketing strategies that used byinternational luxury brands in China market, to learn from the experience of others.The origins of luxury consumption can be traced back to a long time ago andhave expanded geographically. The evolution from the monopoly of the rich todemocratizing luxury has proved that marketing is a dynamic process that should beconsistently measured and continuously refined to ensure relevancy, vibrancy andsustained results over time. In view of this, this paper provides a framework forunderstanding luxury marketing through relationship marketing, internal marketing,integrated marketing and social responsibility marketing, and analyzes the existingstate of luxury marketing in China from the aspects of market status, consumer groupand develop trend. This paper studies the impact of local luxury consumptioncharacteristics on marketing strategies, by using the mechanisms of marketingmanagement, economics and society. In addition, results of an case study are given toillustrate the application of brand positioning and marketing strategies of maturebrands related to China market. And make a thorough inquiry into luxuryconsumption characteristics and brand building in China. At last, we get the mainthread for the development of local luxury brand. We also highlight the importanceof taking potential negative impacts of luxury consumption into consideration when it comes to the positive ones. As our conclusion, this paper suggests objective judgmentand comprehensive understanding towards luxury consumption. On one hand, it isnecessary to recognize it will help stimulate domestic demands, promote consumptionupgrade and draw economic growth. On the other hand, we should also be alert toprepare for the possible social justice issue and negative effects, to become moreaware of potential financial crisis and enhance our sense of hardship.