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A Trial Study of China Luxury Consumption

Author: SunZuoZuo
Tutor: ChenRongRong
School: Capital University of Economics
Course: Industrial Economics
Keywords: Luxury luxuries luxury consumption
CLC: F126.1
Type: Master's thesis
Year: 2007
Downloads: 566
Quote: 3
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Abstract


It has been a long history of luxury and luxury consumption in developed countries, and almost every world-famous luxury brand comes from west. Hence, people are more mature in luxury consumption there. Global luxuries industry grew fast before 1990s, however, experiencing a series of wars, economic depression, and the trend of anti-luxury thought in Europe, it has declined since 2000.For last few years, a tide of luxury consumption emerges in China. International luxury brands collimate Chinese market, luxury-related expositions turn to be China-hosted, and the scale of luxury consumption of China bounded into worldly tops. Mass reports from media also help people uncover the vast expenditure of rich, which makes folk exclaiming the birth of luxury consumption ages in China.Nevertheless, China is a developing country. Though productivity and local life standards are improving, comparing developed countries, there is large gap to stride over. Among the huge number of population in China, most are only stepping in well conditions; some are just eligible for living, while others are struggling for living. Under this situation, how can luxury consumption emerge, and even to an astonishing level? What specialties does this consumption have, and what kind of influence will it bring out?Based on those questions, this paper analyzed the representations of China luxury consumption, aiming to find the answer. Taking Marxism economics as guidance, using western studies of luxury, luxuries, and luxury consumption as references, discussing the whole process of emerging, specialties, and domino effects of China luxury consumption, this paper gives advices to the development of luxury consumption in the end. Studies show us the fact that, unlike people supposed, China is far from stepping into luxury consumption ages. It is only a prelude for China luxury consumption, preparatory stage, not mature in many aspects. The motivation of luxury consumption tends to be ostentatious, showing off wealth, identity, and status in society. Most attentions are paid on high-price and world-famousness of those brands, few on their historical and cultural connotations. This ostentatious luxury consumption is far harm than advantageous for China’s economy and society. Especially for those people putting hope in luxury consumption to pulling up domestic consumption and promoting economic growth, this paper comes to the conclusion that luxury is the same with normal consumption in stimulating demands, via the supply and demand model of monopolies, considering the characters of Chinese economy. Furthermore, importing large number of luxuries and oversea luxury consumption bring wealth abroad rather than domestic, even cutting short the growth of domestic consumption.At the present, negative influence of luxury consumption is more significant, abstemious economy is spark-plugged by government under Chinese conditions, but there is no need to deny or snuff out luxury consumption. Seeding in its specialty and deficiency, steering its development in the case of abstemious economy environment is the future direction.

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > People's living conditions > People's consumption level,the structure
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