Why Chinese Prefer Purchasing Luxury Goods, Especially Dresses, as Compared to British People and What Is the Role of Chinese’s Love for Luxury in Promoting the Development of Luxury Goods Industry

Topics: Luxury good, LVMH, Gucci Pages: 6 (1781 words) Published: June 17, 2012
Research Proposal

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Table of Contents
1. Working title3
2. Introduction3
3. Research Questions4
4. Literature Review5
5. Research Methodology6
6. Sources of data/Information8
7. Data analysis Techniques8
8. Timetable8
9. Ethical Considerations9
10. Reference list10

1. Working title
Why Chinese prefer purchasing luxury goods, especially dresses, as compared to British people and what is the role of Chinese’s love for luxury in promoting the development of luxury goods industry? 2. Introduction

The term “Luxury” is not easy to describe as it is the continuously growing, changing and prejudiced contemplation. The term luxury is usually used to express the most attractive and magnificence brands and things. This word is employed to describe the unnecessary but the most desiring and comfortable items. The complete control or authority over best quality of products makes the luxury brand different from the other products. Although luxury brands have no functional benefit over the other products yet they are considered more advantageous (Okonkwo, 2007). Since the period of 1990s, China has vast understanding, proficiency and acquaintance in the persistent flow of the purchasing power of the consumers. The consumers of the china have become more affluent and knowledgeable. Therefore they are more tolerant and cooperative to the foreign structure and arrangements of the trade. The wealthier consumers of China accepting the overseas sale system in the global markets, stores and the group of the traders provide the basis for the progress and growth of the sumptuousness sellers (Lu, 2011). The corporations trading in the luxury products have been investing in the markets of the China. The first luxury brand outlets were opened in China almost ten years ago by Ferragamo, Bally, Louis Vuitton and Gucci, the luxury dress brands. Currently, due to the growing purchasing power of the consumers and relaxation in the trade restrictions by the authorities of the state, the western luxury products are now facing the problems and difficulties to reinforce their loyalty and assurance to the mainland (Chevalier & Lu, 2011). These products are facing the problems of losing their positions in the markets due to strategies of their competitors. China has become the largest consumer of the luxury goods and luxury goods market is growing at the rate of 30% per annum while the growth of this industry has reduced in the developed world. It was reported by Chevalier & Lu (2011) that chinese luxury market will expand to $15billion in 2015 from $2 billion in 2011. Therefore, the current study is proposed to explore the factors that are driving the growth of luxury brands i.e. dresses in China and importance of sales of luxury brands in china for the overall luxury industry. Aim and Objectives

As the title suggests, the proposed study aims at finding the major factors that involve Chinese people in purchasing luxury goods, especially luxury dresses. It also aims at finding the impact of trend of luxury purchases among Chinese people on the development of the luxury goods industry. The main objectives of the study are: * To examine the relevance of the existing theory on consumer buyer behaviour to the practical situation of luxury goods sales i.e. fashionable dresses in China and the UK * To identify major factors that lead towards difference in consumer behaviour from China and UK towards purchasing luxurious dresses * To identify and explore factors that promotes the preference for luxury goods among Chinese people despite the global financial crisis * To find out the impact of Chinese luxury market on the sales of luxury goods 3. Research Questions

The proposed research questions for the study are:
1. What are trends of luxury dress purchases in China and UK and how the trends relate to the consumer behaviour theory? 2. What are the major factors...
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