Demand For Status And Status Does Not Disappear; &Nbsp; Luxury Goods Are Symbols Of Success In China.

In the past two years, consumers in developed countries have had to suspend their extravagance in the face of the economic downturn.

Because of the lack of "background" factors, luxury goods can easily become some kind of success, except that there are not many other symbols that can be used to display success without the help of "new wealth".

1. loss of price benchmarks

Dan Ariely talked about the concept of "arbitrary coherence" in his book Predictably Irrational.

We often estimate the value of goods and services based on Benchmarking benchmarks or comparison criteria.

Countries such as India, whose economy is developing rapidly, but whose consumption has not been interrupted for historical reasons, their consumers have come into contact with and used products and services of low quality but also of high quality.

Because of those long established benchmarks, it is relatively hard for India consumers to accept the high price of luxury goods.

In China, because the consumption of high quality products has been interrupted for a long time, many consumers are worth a lot of money to a good quality handbag, a good quality watch or a good quality car, which should be worth less than the benchmarking, which makes it easier for them to accept the high price of luxury goods.

2. views on luxury goods and luxury buyers

In China, the history of branding and quality goods for people to spend is rather short.

In the past 20, Chinese consumers gradually found that money could buy better quality products and services, so they naturally expected that expensive luxury goods should have the same value as their price.

Therefore, another reason why luxury goods can attract Chinese consumers is the expectation of Chinese consumers for high quality.

In the eyes of Chinese consumers, those who buy luxury goods are successful people who have good taste and want to enjoy life.

In China, there is no negative snob or "wealthy three generation" people to despise the "new rich class" display.

Elsewhere, these negative snobs or "rich and three generation" will see the "new rich class" as a waste of money and superficial groups. In developed markets, this mood inhibits consumption of luxury goods.

3. constantly changing needs and other driving factors.

In the early days of China's luxury market, showing status is the key driver for the development of the market.

However, as time goes on, the demand of consumers is constantly changing, and several different segments of the market have formed.

One of the growing segments of the market is "self reward". The development of the market indicates that the luxury market is not only driven by the demand of "performance", but also driven by the demand for "satisfaction", and the demand for "satisfaction" is driving the market.

Today's Chinese consumers are willing to spend money to create a proper image for themselves, and are willing to spend a lot of money to reward themselves and pet themselves.

The second growing market segment is "appreciation". In this market segment, what drives consumers to buy is a real appreciation of product quality and manufacturing processes.

Here, cherishing and savoring the luxury brought by a luxury is nothing less than proudly displaying the joy of the product.

There is no doubt that the demand for "status status" will not disappear and will continue to be a benchmark demand for large numbers of consumers, especially those who are new luxury goods and consumers from lower tier cities.

Another driving factor of "appreciation market" in China is the investment value of collectibles.

4. catalytic power in the digital world

The rapid development of the Internet and its power to consumers are playing a role as another catalyst for China's luxury market.

The Internet has increased consumers' access to luxury brands and made consumers in lower tier cities get access to luxury brands.

Research shows that 70% of potential luxury consumers search at least once a month for information on various luxury brands on the Internet.

The information created by consumers online on luxury brands is especially strong, and consumers believe that information is the most reliable.

The astonishing growth of social media may bring another boost to China's luxury market.