Consumption and Consumers' Behaviour Analysis of Luxury Goods in China

Xiaorui Wang

Master's thesis

Abstract:

Since 2018, China's luxury consumption has become the third largest luxury consumption market in the world. Bain Group partner Bruno Lannes predicts that by 2025, China is estimated to represent between 40% to 45% of global luxury market share. China is now on track to become the world's biggest luxury market surpass the Americas and Europe. The growth of China’s luxury consumption is due to the rise of China's economy on the one hand, and the huge base of China's population on the other hand. In addition, the motivations and intentions behind Chinese consumers' purchase of luxury goods are also the key to influencing their consumption. Therefore, it is very important to understand the consumption and consumers’ behaviour of Chinese consumer on luxury. This study is based on the cognitive model of consumers’ behaviour as the theoretical basis, combined with the econometric model in practical part to study the impact of various factors on luxury consumption. The cross-sectional data of 297 samples were surveyed by questionnaire. The influencing factors are divided into external factors and internal factors. The most relevant impact factors are selected to establish an econometric model to analyse the main determinants that affect Chinese consumers' purchase of luxury goods.

Keywords

consumers' behaviour, China luxury market, luxury goods, purchase motivation, luxury consumption, consumption analysis, econometric model, questionnaire

Language used: English

Date on which the thesis was submitted / produced: 31. 3. 2022

Thesis defence

• Supervisor: Ing. Lenka Rumánková, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management