Chinas Consumer Market

Question 1

China’s luxury market stats

McKinsey

Answer 1

One- fifth of global consumption of luxury goods = $28billion by 2015

Fifth in the world in terms of wine expenditure ($7.01 billion)

Question 2

Red wine — why red wine ?

Answer 2

China is the worlds biggest market for red wine- 1.86 billion bottles sold in 2013

The colour for luck, wealth and success

Question 3

Leirsure as a symbol of social class

Answer 3

Thorsteim Veblen created the theory of the leisure class “conspicuous consumption”

Question 4

The wealthy or privileged class

Answer 4

The wealth or privileged class in modern society continues to engage in a wide variety of expensive, prestigious and sometimes decadent leisure activities even though it’s members may not have an immense amount of free time

They tend to travel widely, entertain, patronise the arts and engage in exclusive and high status pastimes

Question 5

Conspicuous consumptions

Answer 5

In leisure class, thorstein velem (1899) proposed and intiqued the idea of “conspicuous consumption” which describes consumer activity, intended to display ones high social status

Using the example of hand crafted solider spoke, though no more serviceable than and distinguishable from factory - made aluminium ones, they conferred high social rank and signalled membership in what Veblen called the leisures class

Question 6

Conspicuous consumption in china

Answer 6

In China, while income inequality is increasing, the consumption habits of a new “aspirational class”, seem to conform to veblens idea of conspicuous consumption, with research drawing comparisons between the Chinese concept of ‘face’ and the visible markers that concretise material achievement

Question 7

Why do chinas consumers purchase wine?

Answer 7

To reward others, to maintain good relationships with others, to impress others

Question 8

What should Europe and America do ?

Answer 8

Develop more effective positioning strategies for the Chinese middle class market