August 16, 2012
Research Essay: Luxury Consumers in China
There are three reasons why Chinese people should slow down their consumption of luxuries. Firstly, most of Chinese purchase luxury goods just to show off, which shows their false value. Secondly, youth's immature consumption of expensive products will lead to economy pressure. The last reason is that the rich people should try to spend more money on charity to decrease the gap between the poor and the rich.
With the development of Chinese economy, the living standard of Chinese people has been raised significantly, which makes them be increasingly interested in luxury goods (i.e., products and services that are not considered essential and are associated with affluence ) and search for high-quality lives. According to the China Daily , China has surpassed the US to become the second-largest luxury market in 2009, spending of $9.4 billion and accounting for 27.5 percent of total global sales. Furthermore, a prediction by investment bank Goldman Sachs shows that China’s consumption of luxury goods will rise from 12 percent to 29 percent by 2015. As far as I am concerned, the rapid growth of Chinese luxury consumption should slow down. Because of citizens' wrong understanding of luxuries, young people's irrational consumption and the growing gap between the rich and the poor in China.
The majority of Chinese people misunderstand the luxury brands, considering them as success, which will lead to over emphasis on the materials instead of spirit power. In the words of China Daily, buying a BMW would be a reflection of your own power and a status symbol in China, which indicates that Chinese people tend to concentrate on how others think about them than on their individual value and pleasure. Moreover, they buy luxury goods in order to show off their fortune and let others assume they are successful. However, in the most recent University of Michigan...