Luxury Marketing Report: UK and Chinese Consumer Analysis

This report provides a comprehensive analysis of luxury marketing, focusing on the contrasting consumer behaviors in the United Kingdom and China. It begins with an executive summary outlining the core concepts of luxury marketing, which involves providing high-quality, high-priced brand products to affluent consumers seeking to enhance their social status. The main body delves into the differences between UK and Chinese consumers, highlighting cultural variations, consumption patterns, and attitudes towards luxury goods. The report examines how factors such as traditional versus Western cultural influences, age demographics, and motivations (e.g., self-image, gifting) shape purchasing decisions. It also discusses the marketing implications for luxury brands, emphasizing the need for tailored strategies that cater to the specific demands of each market segment. The report concludes by summarizing the key findings and emphasizing the importance of understanding consumer behavior to effectively market luxury products. Finally, it provides references to support the analysis.

luxury marketing

EXECUTIVE SUMMARY
The project is based on Luxury marketing which deals in providing high priced quality
brand products to the luxurious customers who can easily afford purchasing the product These
products are greatly demanded by the customers in order to enhance their self status within the
society. Their are different customers who have different attitudes towards buying the luxurious
products. This essay is based on the difference between the UK and Chinese consumers in
Luxury market in which UK consumers have a traditional culture as compared to Chinese who
have a western culture and believes in purchasing more of luxurious products as compared to the
UK consumers.

Table of Contents
INTRODUCTION...........................................................................................................................2
Main Body ......................................................................................................................................3
Marketing Implications...................................................................................................................7
CONCLUSION................................................................................................................................8
.........................................................................................................................................................9
REFFERNCES.................................................................................................................................9
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INTRODUCTION
Luxury Marketing is the marketing of goods that gives immense comfort and pleasure
such as buying expensive clothes, food, cars and fashionable items which tend to make life more
pleasant for the consumers (Hoffmann and Coste-Manière, 2016). In today's competitive
environment luxury brands have to adopt effective marketing strategies to in order to push the
brand for premium category customers. This project is based on the comparison of luxury brand
segments between the UK and Chinese consumer that how luxury brands are perceived by the
consumers in the different countries. It will also discuss marketing implication for marketers of
luxury brands.
Main Body
Luxury Market is a market for expensive goods which is not a necessity for the
individual but are bought fir pleasure and to build a self image status. In context to this Fashion
industries are mainly trying to enter the Chinas Booming market and attains profitability and
greatly captures the market share. Therefore Luxury products have specific characteristics
compared to other products which consists of high level of price, superior quality, aesthetics,
rarity and have a status symbol. There are various luxury brands such as Rolex Brand, Calvin
Klein, Hugo Boss, Harrods and many more. Apart from this there are various brands which went
from luxury to fashion strategy such as Gucci and Dior is trying to move from Fashion strategy
to luxury one. Moreover Audi and Lexus are moving from premium strategy to a luxury one.
Growth of the luxury brands have increased as with the increasing number of rich customers
demand is increasing for luxury cars, yachts, resorts,services, watches, jewellery etc (Jiang and
Cova, 2012).
China and Britain both play a important role in the global luxury market. As China is a
oriental country and UK a western country have different culture, income and social level which
leads to different selection of the two markets.
Comparison Between the UK and Chinese Consumers.
There is a comparison of luxury brand between the UK and Chinese consumer, Luxury
consumers within the UK are driven by the quality and not influenced by other individuals. With
the ongoing growth of luxury brand through out the globe it has targeted the consumers within
China to purchase high quality products. Luxury goods market is relatively a new within China
but its growth rate is higher than that of United Kingdom. This has made China the worlds third
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largest luxury goods consumer country. Apart from this there is a huge difference in the concept
of consumption level towards the luxury products such as of China and UK.
In China consumers for the luxury products are relatively under the age of 40 years while
in UK luxury market is captured by 40-70 tears middle and old aged customers. This difference
is due to the drastic social and economical changes .Moreover Chinese consumers demands for
are of personal products such as luxury bags, perfume, watches and other personal articles. With
this many brands such as Gucci, Rolex have witnessed major sales during the period. For
example Flora by Gucci was again restarted by Frida Giannini as a collection of perfumjes by
younger women. This resulted in heavy sales for the company. But compared to UK consumers
demand for Housing, cars, travel services. As with the rise in the economic growth number of
wealthy people is rising within China, this creates penetration of western culture into country and
increases the desire for luxury lifestyle (Kapferer and Bastien, 2012). Moreover Chinese are
willing as well as able to afford the high cost top quality products so as to build their status and
image but in comparison to UK there prevails a Traditional culture which sometimes resist
individuals to buy high prices luxury branded products and prefer to purchase products which are
of their daily necessity. This creates a difference in the luxury marketing of UK and Chinese
Luxury market. Moreover products are of great concern in the Chinese luxury market which
value more of the authentic luxury products but market within the UK believe that with the
availability of the knock off products it helps in increasing the brand awareness and creates value
for high priced luxury products. Apart from this there are various cultural and motivational
factors which affects the buying pattern towards the luxury products in UK and China. In context
to this Chinese Individuals are likely to focus on external and social needs compared to the
individual needs. Chinese are concerned with their images among the group members and often
leads to owning luxury brands moreover UK consumers are more likely to focus on their
symbolic value, they are not focused towards building their self image and respect.
Gifting has been identified as an important motive for the Chinese luxury product buying
behaviour. As Consuming expensive luxury products reflects their social status and creates a
balance between the individual and the social needs. But in Comparison to UK luxury consumers
they purchase luxury branded items for their family members to show family wealth and status.
Also Chinese consumers feel that the more expensive the gift is, better relationship and status
will be maintained in society. For example Chinese consumers while providing Rolex watches as
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a gift will assist them to establish a proper and a enhanced status symbol in the society. But UK
consumers are more concerned for their family status they didn't believe in gifting ROLEX
watches to their friends.
Attitude towards Buying Luxury Brands
Attitude of the consumer towards the buying behaviour is affected by the culture
prevailing in the country. As consumers within UK are socially active and prefers in collectivism
this led them to create demand for more luxury products in order to maintain their self respect
and status. Moreover consumers within UK follows a traditional culture and doesn't prefers more
buying of luxury products so as to off show in the society. For example purchasing of Audi Car
for Chinese people will be to built self respect and status in the society and for the UK
consumers it will be enjoy the brand and creates a family respect. They doesn't want to build
social respect. This shows the different attitude of the consumer towards buying the product
(Kapferer and et.al., 2017).
This is a brief comparison of the UK and the Chinese consumers 6towards buying the
luxury products in the market.
There is a model associated with luxury products which is seemed different by the customers
according to their attitude, lifestyle and cultural factors. For example when the customers
purchase products From Dior brand it provides hem different types of brand against their
purchase. these are described as follows-
Their are different types of values associated with luxury brand which the consumer gets
after purchasing them. These are the financial value, functional value, individual value and the
social value. Customers feel that purchasing luxury products from Dior brand provides them
value for the price paid against the product(Miller and Mills, 2012). Customers within UK feels
that luxury products gives them a usability value, quality and uniqueness value which is most
important for them as they believes buying brands with high quality as well as the individual
value which the customers of China believes that purchasing Respective brand products
provides them self identity value which is necessary for them to build social image in the society
whereas social value is also perceived by the Chinese Consumers who wants to have high
prestige among the society and maintains their self respect.
There is a another theory which is related to purchasing the luxurious branded products
which is the Self image congruence theory which states that consumers buy the luxurious
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product or the brand when they feels that the respective has a image in the market and is similar
to their concept. This greatly helps them to choose the most effective brand within the different
ranges of luxurious products. This also helps in comparison of brands within the market place
and assist in choosing the most effective one.
Marketing Implications
The main implications of the marketing is the development of the strategy that results in
increased customer satisfaction. In context to the luxury products its main aim is to provide value
of the price paid against purchasing the products. Marketing implications of the luxury products
should provide luxurious products and services to the consumers within the UK and China so as
to meet up their satisfaction level. Marketing implications towards luxury products should
include the following-
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Illustration 1: Conceptual mode, 2019
Source:(Conceptual mode, 2019)

Marketers of luxury products should provide goods according to the demand of the young
generations but should not forget about the requirements of the boomers. As millennials are the
ones who demand more of the luxurious products but boomers are the ones who have a greater
spending impact in the market place. It is the duty of the marketers to analyse the demand of the
customer and provide luxurious products which meet up their satisfaction level.
Marketing implications of the marketers of should pay attention towards the trends with
younger generation as these type of customers get easily influenced and are driven by the trend
than the older consumers which are comfortable with their daily routine work. Moreover this an
opportunity for the marketers to enhance their business opportunities and assist them in capturing
the larger market share. For example marketers of Gucci brand should completely analyse the
demands of the products in the market and make necessary changes, along with this it should
analyse the existing trends in the market and therefore should produce the product so as to meet
the satisfaction level of customers (Loureiro,and de Araújo, 2014).
Along with this in order to create a enhanced brand image it is the responsibility of the
marketers of the luxury products to provide such innovative offering to the consumers which is
hard to replicate for any other brands. Consumers in the modern world often gets bored with the
same shopping experience, they start demanding some thing new and innovative so as to change
heir shopping experience. This is the luxury experience which the customers want. This strategy
or implication adopted by the markets assist them in growth and success of their business.
The above implications are necessary for the marketers of the luxurious products which
needs to be adopted so as to provide the goods and services which meet up their satisfaction
level. This would greatly assist the company in enhancing their profitability and productivity
level.
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CONCLUSION
From the above report it has been concluded that luxury marketing mainly targets the
premium class customers who demand the luxurious offering and can easily afford the high
priced brands. It has been analyse that there are different customers in different countries who
have different attitudes towards the luxury products. Their are different factors which affects
their buying behaviour such as social, cultural and economic condition of the the customer which
have a significant impact on their buying behaviour. Moreover marketers should adopt effective
marketing implications so as to provide the customers with effective luxurious products and meet
their satisfaction level.
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REFFERNCES
Books and Journals
Hoffmann, J. and Coste-Manière, I. Eds., 2016. Luxury strategy in action. Springer.
Jiang, L. and Cova, V., 2012. Love for luxury, preference for counterfeits–A qualitative study in
counterfeit luxury consumption in China. International journal of marketing studies.
4(6).
Kapferer, J.N. and Bastien, V., 2012. The luxury strategy: Break the rules of marketing to build
luxury brands. Kogan page publishers.
Kapferer and et.al., 2017. Advances in Luxury Brand Management. Springer.
Loureiro, S.M.C. and de Araújo, C.M.B., 2014. Luxury values and experience as drivers for
consumers to recommend and pay more. Journal of Retailing and Consumer Services,
21(3), pp.394-400.
Miller, K.W. and Mills, M.K., 2012. Probing brand luxury: A multiple lens approach. Journal of
Brand Management. 20(1). pp.41-51.
Seo, Y. and Buchanan-Oliver, M., 2015. Luxury branding: the industry, trends, and future
conceptualisations. Asia Pacific Journal of Marketing and Logistics. 27(1). pp.82-98.
Shukla, P. and Purani, K., 2012. Comparing the importance of luxury value perceptions in cross-
national contexts. Journal of Business Research, 65(10). pp.1417-1424.
Sung, Y., Choi, S.M., Ahn, H. and Song, Y.A., 2015. Dimensions of luxury brand personality:
Scale development and validation. Psychology & Marketing. 32(1). pp.121-132.
Theng So, J., Grant Parsons, A. and Yap, S.F., 2013. Corporate branding, emotional attachment
and brand loyalty: the case of luxury fashion branding. Journal of Fashion Marketing
and Management: An International Journal. 17(4). pp.403-423.
Wiedmann, K.P. and Hennigs, N. eds., 2012. Luxury marketing: A challenge for theory and
practice. Springer Science & Business Media.
Chu, S.C., Kamal, S. and Kim, Y., 2013. Understanding consumers' responses toward social
media advertising and purchase intention toward luxury products. Journal of Global
Fashion Marketing. 4(3). pp.158-174.
Online
Conceptual Model. 2019. [Online]. Available Through:
<https://www.researchgate.net/figure/The-Conceptual-Model_fig1_228344191>
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