Abstract
This paper offers insights into the use of social network sites and e-commerce platforms to engage consumers against the background of increasing consumption of luxury brands by young consumers in China. The data were obtained from personal interviews with 20 respondents between 20 and 30 years of age who were recruited via a snowball method in Hong Kong. Young Chinese consumers have varied reasons and patterns for luxury consumption. The key motivations and behavior patterns toward the use of social media and e-commerce platform in their luxury purchase are also examined. Companies must consider the differences that exist within this generation to effectively approach this market. The findings show that young consumers in China tend to heavily rely on information from online social networks and e-commerce platform in the pre-purchase and purchase processes. Social networks and e-commerce platforms also facilitated the cross-border luxury buying behaviors of Chinese consumers. Luxury retailers are required to rethink the roles of physical shops and develop better integration of online and offline activities to meet the changes of Chinese consumers. The motivations of buying luxury brands as well as their use of social media in connection with luxury brands are investigated. This study thus contributes to the research of the marketing of the luxury goods market in China.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Anonymous (2013) Luxury market in China: huge growth potential ahead. Retrieved from http://www.funggroup.com/eng/knowledge/research/china_dis_issue109.pdf
Aronson J (1995) A pragmatic view of thematic analysis. Qual Rep 2(1):1–3
Atsmon Y, Dixit V (2009) Understanding China’s wealthy. McKinsey Quarterly, pp 32–33
Atsmon Y, Dixit V, Leibowitz G, Wu C (2011) Understanding China’s growing love for luxury. McKinsey Insights China
Barwise P, Meehan S (2010) New social media possibilities’. Harvard Bus Rev 88(12):80–84
Beardsley B, Becerra J, Burgoni F, Holley B, Kessler D, Muxi F et al (2014) Global wealth 2014: Riding a wave of growth. BCG Perspectives
Berger R (2012) Chinese consumers report—Luxury; A brand awareness upgrade. Welcoming a new era in the Chinese luxury market. Retrieved from http://www.rolandberger.com/media/pdf/Roland_Berger_taC_Chinese_Consumer_Report_Luxury_20121017.pdf
Beverland M (2006) The ‘real thing’: branding authenticity in the luxury wine trade. J Bus Res 59(2):251–258
Cecilia (2014) 82 % Sina Weibo users shop online. China Internet Watch. http://www.chinainternetwatch.com/11199/sina-weibo-users-shop-online/
Chadha R, Husband P (2010) Cult of the luxury brand: inside Asia’s love affair with luxury. Nicholas Brealey Publishing
Chan NL, Guillet BD (2011) Investigation of social media marketing: how does the hotel industry in Hong Kong perform in marketing on social media websites? J Travel Tourism Market 28(4):345–368
Chiu C, Lin D, Silverman A (2012) China’s social-media boom. http://www.mckinseychina.com/chinas-social-media-boom-2/
Commuri S (2009) The impact of counterfeiting on genuine-item consumers’ brand relationships. J Market 73(3):86–98
Court D, Elzinga D, Mulder S, Vetvik OJ (2009) Consumer decision journey. McKinsey Quarterly. http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-consumer-decision-journey
Cressey PF (1929) The influence of the literary examination system on the development of Chinese civilization. Am J Sociol 250–262
D’Arpizio C, Levato F, Zito D, de Montgolfier J (2014) Luxury goods worldwide market study, fall-winter 2014: The rise of the borderless consumer. Bain & Company, Inc
De Bruyn A, Lilien GL (2008) A multi-stage model of word-of-mouth influence through viral marketing. Int J Res Mark 25(3):151–163
De Lange M (2015) China’s Connected Consumers: when 10,000 Chinese shop…Insights from a 2015 survey. KPMG, Hong Kong
Dou W, Wang G, Zhou N (2006) Generational and regional differences in media consumption patterns of Chinese generation X consumers. J Advertising 35(2):101–110
Dubois B, Czellar S (2002) Prestige brands or luxury brands? An exploratory inquiry on consumer perceptions. http://archive-ouverte.unige.ch/unige:5816
Dubois B, Czellar S, Laurent G (2005) Consumer segments based on attitudes toward luxury: empirical evidence from twenty countries. Market Lett 16(2):115–128
Eng T-Y, Bogaert J (2010) Psychological and cultural insights into consumption of luxury western brands in India. J Custom Behav 9(1):55–75
Fitzpatrick L (2009) A brief history of China’s one-child policy. Time. http://content.time.com/time/world/article/0,8599,1912861,00.html
Fournier S (1998) Consumers and their brands: developing relationship theory in consumer research. J Consum Res 24(4):343–353
Godes D, Mayzlin D (2009) Firm-created word-of-mouth communication: evidence from a field test. Market Sci 28(4):721–739
Goh B (2015) UPDATE 1-Chinese rivals snap at Alibaba’s heels in cross-border e-commerce race. Reuters. http://www.reuters.com/article/china-retail-internet-idUSL4N0W01B120150226
Griffiths J (2015) China’s Alibaba continues shopping spree with investment in flash sales platform Mei.com. South China Morning Post. http://www.scmp.com/tech/enterprises/article/1834498/alibaba-announces-major-investment-flash-sale-platform-meicom
Hennigs N, Wiedmann KP, Klarmann C, Strehlau S, Godey B, Pederzoli D, Donvito R (2012) What is the value of Luxury? A cross-cultural consumer perspective. Psychol Market 29(12):1018–1034
Hofstede G (1991) Cultures and organizations: software of the mind. McGraw-Hill, New York
Holbrook MB (1999) Consumer value: a framework for analysis and research. Psychology Press
Hung K-P, Chen AH, Peng N, Hackley C, Amy Tiwsakul R, Chou C-L (2011) Antecedents of luxury brand purchase intention. J Product Brand Manage 20(6):457–467
Incitez. (2016) China online retail market totaled US$143.5B in Q3 2015. China Internet Watch. http://www.chinainternetwatch.com/16771/online-retail-market-us143-5-billion-2015/
Jackson T, Haid C (2002) Gucci Group-the new family of luxury brands. Int J New Product Dev Innovation Manage 4(2):161–172
Jang H, Olfman L, Ko I, Koh J, Kim K (2008) The influence of on-line brand community characteristics on community commitment and brand loyalty. Int J Electron Commer 12(3):57–80
Jones S (2015) Should luxury brands stop avoiding ecommerce? Luxury Daily. http://www.luxurydaily.com/should-luxury-brands-stop-avoiding-ecommerce/
Kapferer J-N (1997) Managing luxury brands. J Brand Manage 4(4):251–259
Kapferer JN (2006) The two business cultures of luxury brands. Brand cult 67–76
Kim AJ, Ko E (2010) Impacts of luxury fashion brand’s social media marketing on customer relationship and purchase intention. J Global Fashion Market 1(3):164–171
Kim AJ, Ko E (2012) Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. J Bus Res 65(10):1480–1486
Krasnova H, Spiekermann S, Koroleva K, Hildebrand T (2010) Online social networks: why we disclose. J Inf Technol 25(2):109–125. doi:10.1057/jit.2010.6
Lau JM (2012) Nei di wang min shang wang xu qiu yu xiao fei mu shi (Internet demand and online buying pattern of internet users in China). Hong Kong Econ J B15
Lemon KN, Rust RT, Zeithaml VA (2001) What drives customer equity. Market Manage 10(1):20
Li D, Jiang Y, An S, Shen Z, Jin W (2009) The influence of money attitudes on young Chinese consumers’ compulsive buying. Young Consum 10(2):98–109
Li JJ, Su C (2007) How face influences consumption. Int J Market Res 49(2):237–256
Liu M (2015) Luxury groups harness the power of social media. Financial Times. http://www.ft.com/cms/s/0/753b5318-3220-11e5-91ac-a5e17d9b4cff.html#axzz40C7xVPB8
Lu PX (2008) Elite China: luxury consumer behavior in China. Wiley (Asia) Pte Ltd
Muniz AM, O’Guinn TC (2001) Brand community. J Consum Res 27(4):412–432
Ng M (2014) Social media and luxury fashion brands in China: the case of Coach. J Global Fashion Market, 1–15. doi:10.1080/20932685.2014.907607
O’Cass A, Choy E (2008) Studying Chinese generation Y consumers’ involvement in fashion clothing and perceived brand status. J Product Brand Manage 17(5):341–352
O’Cass A, McEwen H (2004) Exploring consumer status and conspicuous consumption. J Consum Behav 4(1):25–39
Okonkwo U (2007) Luxury fashion branding: trends, tactics, techniques. Palgrave Macmillan
Okonkwo U (2010) Luxury online: styles, systems, strategies. Palgrave Macmillan
Pan B, MacLaurin T, Crotts JC (2007) Travel blogs and the implications for destination marketing. J Travel Res 46(1):35–45
Park H, Cho H (2012) Social network online communities: information sources for apparel shopping. J Consum Market 29(6):400–411. doi:10.1108/07363761211259214
Phan M, Thomas R, Heine K (2011) Social media and luxury brand management: the case of Burberry. J Global Fashion Market 2(4):213–222
Phau I, Prendergast G (2000) Consuming luxury brands: the relevance of the ‘rarity principle’. J Brand Manage 8(2):122–138
Phau I, Teah M (2009) Devil wears (counterfeit) Prada: a study of antecedents and outcomes of attitudes towards counterfeits of luxury brands. J consum Market 26(1):15–27
Podoshen JS, Li L, Zhang J (2011) Materialism and conspicuous consumption in China: a cross-cultural examination. Int J Consum Stud 35(1):17–25
Renren (2014) Annual financial report. Retrieved from http://phx.corporateir.net/External.File?tem=UGFyZW50SUQ9MjgwNjMyfENoaWxkSUQ9LTF8VHlwZT0z&t=1
Renren (2015) Annual financial report. Retrieved from http://phx.corporateir.net/External.File?item=UGFyZW50SUQ9MzM4MzQ4fENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=635986201122110803
Scelzo T, Lerman D (2009) Little emperors grown up: a case study of cosmetic usage. Young Consum 10(2):110–119
Schmitt BH (2010) Customer experience management: a revolutionary approach to connecting with your customers. Wiley
Seo Y, Buchanan-Oliver M (2015) Luxury branding: the industry, trends, and future conceptualisations. Asia Pac J Market Logistics 27(1):82–98
Sheth JN, Newman BI, Gross BL (1991) Why we buy what we buy: a theory of consumption values. J Bus Res 22(2):159–170
Smith JB, Colgate M (2007) Customer value creation: a practical framework. J Market Theory Pract 15(1):7–23
So LM (2012) Motivations of luxury brand consumption: a comparison between China and Hong Kong Chinese consumers. Paper presented at the Cambridge Business and Economics Conference. Cambridge, UK
So LMS (2011) Luxury generational gap: A comparison between generation X and Y. Paper presented at the 2011 Cambridge Business and Economics Conference, Cambridge, UK
Solca L, Bertini P, Fan H (2014) China Reality Check: Luxury and the Online Boom
Stafford TF, Stafford MR, Schkade LL (2004) Determining uses and gratifications for the internet. Decis Sci 35(2):259–288. doi:10.1111/j.00117315.2004.02524.x
Suessmuth-Dyckerhoff C, Hexter J, St-Maurice I (2008) Marketing to China’s new traditionalists. Far Eastern Econ Rev 171(3):28
Tay M (2008) Boom in Asia, gloom elsewhere for luxury labels. The Straits Times, 1
Tse DK (1994) Understanding Chinese people as consumers: past findings and future propositions. Department of Business and Management, Faculty of Business, City University of Hong Kong
Tynan C, McKechnie S, Chhuon C (2010) Co-creating value for luxury brands. J Bus Res 63(11):1156–1163
Unger J (2006) China’s conservative middle class. Far Eastern Econ Rev 169(3):27
Van Bommel E, Edelman D, Ungerman K (2014) Digitizing the consumer decision journey. McKinsey Quarterly
Vigneron F, Johnson LW (1999) A review and a conceptual framework of prestige-seeking consumer behavior. Acad Market Sci Rev 1999:1–15
Wang A (2015) Weibo search users insights 2015. China Internet Watch. http://www.chinainternetwatch.com/16366/weibo-search-users-insights-2015/
Wang CL, Lin X (2009) Migration of Chinese consumption values: traditions, modernization, and cultural renaissance. J Bus Ethics 88(3):399–409
Wassener B (2009) Younger buyers challenge luxury retailers in Asia. The New York Times. Retrieved from http://www.nytimes.com/2009/11/18/business/global/18zegna.html?_r=0
Wiedmann K-P, Hennigs N, Siebels A (2007) Understanding and measuring luxury value: A multidimensional model of consumers’luxury perception. Market Theory Appl 393
Wilson A (2011) Marketing research: an integrated approach. FT Prentice Hall
Wong NY, Ahuvia AC (1998) Personal taste and family face: luxury consumption in confucian and western societies. Psychol Market 15(5):423–441
Wu M-SS, Chaney I, Chen C-HS, Nguyen B, Melewar T (2015) Luxury fashion brands: factors influencing young female consumers’ luxury fashion purchasing in Taiwan. Qual Market Res Int J 18(3):298–319
Yu L, Suen HK (2005) Historical and contemporary exam-driven education fever in China. KEDI J Educ Policy 2(1)
Zhan L, He Y (2012) Understanding luxury consumption in China: consumer perceptions of best-known brands. J Bus Res 65(10):1452–1460. doi:10.1016/j.jbusres.2011.10.011
Zhang B, Kim J-H (2013) Luxury fashion consumption in China: factors affecting attitude and purchase intent. J Retail Consum Serv 20(1):68–79
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Ng, M. (2017). Luxury Brands and Social Media in China: New Trends and Development. In: Choi, TM., Shen, B. (eds) Luxury Fashion Retail Management. Springer Series in Fashion Business. Springer, Singapore. https://doi.org/10.1007/978-981-10-2976-9_10
Download citation
DOI: https://doi.org/10.1007/978-981-10-2976-9_10
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-10-2974-5
Online ISBN: 978-981-10-2976-9
eBook Packages: Business and ManagementBusiness and Management (R0)