Luxury consumption motivations of the younger generation in Wuhan, China

With the extensive economic development in China, Chinese people demonstrated a strong desire and remarkable purchase power on the luxury products. This research aims to explore the underlying motives of young Chinese consumers aged between 20 and 40 in Wuhan and examine the relevancy between these motives and their consumption behaviour. This study examined the eight different luxury consumption motives based on product, personal, and social dimensions. The research data were collected from luxury consumers aged between 20 and 40 living/studying in the secondary city of China, -Wuhan. By conducting a questionnaire including both quantitative and qualitative questions, this research collected data of 75 effective questionnaires out of 100. The data was analysed by a SPSS software. Descriptive statistics, Correlation analysis, and Independent-samples t-test were conducted to evaluate the extent of different motives and the correlation between them. The research finds out that eight motivations (product quality, self-actualization, out of emotion, investment for future, social comparison, other’s influence, gift, and special occasions) based on product, personal and social dimensions collectively consist of motivations of the Chinese younger generation to consume luxuries. Results showed that product quality, self-actualization were important factors of luxury consumption. On the other hand, social comparison, other’s influence and gifting were not significant luxury consumption motivations for Chinese young people. Younger consumers who buy luxury commodities for social comparison or gifting reasons were more susceptible to other’s influence and purchase product out of emotion. Also, consumers who were higher quality-conscious were less willing to pay for luxuries for social comparison. Thesis findings provide more in-depth information about young Chinese luxuries consumers for luxury brands. Therefore, the research data can provide reference for luxury brands to accordingly adjust products and improve marketing communication strategies for the Chinese market