Research On Chinese Consumers' Purchasing Behavior Of Foreign Luxury Brands

Understanding the consumer behavior is a key factor for all companies,especially before launching a product or a service,or before entering a new market.It is very important to understand what is the consumer behavior during the purchase of a good or a service and what factors are leading the consumer to make the final decision,that is to say: buying or not buying?Nowadays,Foreign luxury brands companies are investing more and more in China and its luxury market,in fact China has become one of the strongest economic power of the world and have the largest pool of consumers in terms of luxury goods for foreign luxury brands.Chinese consumers are now more mature and they appreciate to show their power in the luxury purchase.In order to maximize the satisfaction of the client and maximize the profit of their brands,these foreign companies need to understand on what factors Chinese consumers are basing their decision to afterward adapt their strategy to become more successful.The thesis is principally focused on the Chinese luxury market.The relative researches in this field are poorly scarce due to the relative newness and fast development of the luxury market in China.The lack of real academic achievement for guiding foreign luxury brands in the Chinese market thanks to understand the Chinese consumer behavior led me to achieve this study.The objective of this research is to study the consumer behavior of Chinese consumers in China toward the luxury market to establish new recommendations on the strategy to adapt and to maximize the strategy of those luxury brands.Hypothesis: Chinese luxury consumers base their purchase on conspicuous consumption and social reputation.To conduct our study,a survey was administrated at the entrance of luxury brand shops about the reasons why Chinese consumers buy a luxury good or not.Consumer will be randomly approached and asked to answer questions about their identity,job,favorite brands,type of luxury goods they purchase or the factors they value when they consider buying a luxury good.A regression analysis underscored various degrees of importance that release the brand image factor as the most important in the decision-making of a Chinese consumer.The factor uniqueness was the second one and the necessity was the very last one in term of importance.From these findings,Luxury brands will be able to focus their new marketing strategy in order to increase the satisfaction of the consumer and therefore making them purchase more luxury goods and increase their turnover.The objective will be to summarize the theorical back and the related literature to this study to get more knowledge about the subject and will be divided in four main parts.The first part will be about the Chinese luxury market.The second part will be about the analysis of the Chinese consumers population.The third part will be about the Chinese consumption of Luxury goods in China.The fourth and last part will be about the luxury consumer motivation and psychology.