Journal Archive

International Journal of Costume and Fashion - Vol. 20 , No. 1
[Paper List] [Go to Volume List]

[ Article ]
International Journal of Costume and Fashion - Vol. 20, No. 1, pp. 27-43
Abbreviation: IJCF
ISSN: 2233-9051 (Print) 2288-7490 (Online)
Print publication date 30 Jun 2020
Received 27 May 2020 Revised 16 Jun 2020 Accepted 20 Jun 2020
DOI: https://doi.org/10.7233/ijcf.2020.20.1.027

Individual and Social Factors Impacting Chinese Millennials’ Luxury Consumption
Jung-Hwan Kim† ; Man Man Hsu ; Chi-lok Andrew Yuen
Associate Professor, Dept. of Retailing, College of Hospitality, Retail and Sport Management, University of South Carolina, Columbia, USA
Master of International Business, Darla Moore School of Business, University of South Carolina, Columbia, USA
Senior Lecturer, Dept. of Decision Sciences and Management Economics, CUHK Business School, The Chinese University of Hong Kong, Shatin, N.T., Hong Kong

Correspondence to : †jhkim@mailbox.sc.edu

Citation Kim, J.-H., Hsu, M. M., & Yuen, C.-I. A. (2020). Individual and social factors impacting Chinese millennials’ luxury consumption. International Journal of Costume and Fashion, 20(1), 27-43.

Abstract

This study examined individual and social determinants that impact Chinese Millennials’ desire for luxury status consumption which eventually influences their purchase intent of luxury fashion goods. Whether income derived differences in regard to the determinants exist or not was further investigated. A self-administered survey was employed to collect data from undergraduate and graduate students at a large university in Hong Kong, China. A series of regression analyses were utilized to test hypotheses. The findings of the study indicate that both individual (i.e., materialism) and social elements (i.e., need for uniqueness and social comparison) positively influence Chinese millennials’ desire for status consumption of luxury fashion goods, while social factors are the key drivers of low income group’s desire for status consumption. These findings provide major implications to academics and practitioners.

Keywords: Chinese Millennials, Luxury goods, Status consumption, Purchase intent, Income
References
1. Abe, K. (2018). Millennials inject new vigor into China’s luxury market. Nikkei Asian Review. Retrieved from https://asia.nikkei.com/Economy/Millennials-inject-new-vigor-into-China-s-luxury-market
2. Ajitha, S., & Sivakumar, V. J. (2017). Understanding the effect of personal and social value on attitude and usage behavior of luxury cosmetic brands. Journal of Retailing and Consumer Services, 39, 103-113.
3. Bain & Company. (2018). Global personal luxury goods market expected to grow by 6-8 percent to €276-281b in 2018, driven by strong rebound in China. Retrieved from https://www.bain.com/about/media-center/press-releases/2018/bain-spring-luxury-report-2018/
4. Bain & Company. (2019). What’s powering China’s market for luxury goods? Retrieved from https://www.bain.com/insights/whats-powering-chinas-market-for-luxury-goods/
5. Bastien, V., & Kapferer, J.-N. (2013). More on luxury anti-laws of marketing. In K.P. Wiedmann, & N. Hennigs (Eds.), Luxury marketing: A challenge for theory and practice (pp. 19-34). Verlag, Wiesbaden: Gabler.
6. Ben-Shabat, H. (2015). The new luxury consumer? Think: Multiple consumers. The Robin Report. Retrieved from https://www.therobinreport.com/the-new-luxury-consumer-think-multiple-consumers/
7. Belk, R. W. (1984). Three scales to measure constructs related to materialism: Reality, validity, and relationships to measures of happiness. In Thomas C. Kinnear (Ed.), NA - Advances in Consumer Research, 11, 291-297. Provo, UT: Association for Consumer Research. Retrieved from https://www.acrwebsite.org/volumes/6260/vol
8. Bian, Q., & Forsythe, S. (2012). Purchase intention for luxury brands: A cross cultural comparison. Journal of Business Research, 65(10), 11443-1451.
9. Bilge, H. A. (2015). Luxury consumption: Literature review. Khazar Journal of Humanities and Social Sciences, 18 (1), 35-54. Retrieved from http://hdl.handle.net/20.500.12323/3250
10. Blazyte, A. (2020). Luxury goods market in China. Statista. Retrieved from https://www.statista.com/topics/1186/luxury-goods-market-in-china/
11. Butcher, L., Phau, I., & Shimul, A. S. (2017). Uniqueness and status consumption in Generation Y consumers: Does moderation exist? Marketing Intelligence & Planning, 35(8), 673-687.
12. Chan, K., & Prendergast, G. P. (2007). Materialism and social comparison among adolescents. Social Behavior and Personality, 35(2), 25-33.
13. Chan, K., & Prendergast, G. P. (2008). Social comparison, imitation of celebrity models and materialism among Chinses youth. International Journal of Advertising, 27(5), 799-826.
14. Chen, S., & Lamberti. L. (2015). Entering the dragon’s nest: Exploring Chinese upper-class consumers’ perception of luxury. Qualitative Market Research: An International Journal, 18(1), 4-29.
15. Chinese millennials dominate global luxury market. (2018, October 10). WARC. Retrieved from https://www.warc.com/newsandopinion/news/chinese_millennials_dominate_global_luxury_market/41156
16. Chinese millennials rule the global luxury market (2018, October 1). Asia Times. Retrieved from https://asiatimes.com/2018/10/chinese-millennials-rule-the-global-luxury-market/
17. Cui, Y., Choi, M. Y., & Lee, Y-J. (2019). A study on Chinese female consumers’ purchase of second-hand fashion luxury. International Journal of Costume and Fashion, 19(2), 1-10.
18. Eastman, J. K., & Eastman, K. L. (2015). Conceptualizing a model of status consumption theory: An exploration of the antecedents and consequences of the motivation to consumer for status. Marketing Management Journal, 25(1), 1-15. Retrieved from http://search.ebscohost.com.pallas2.tcl.sc.edu/login.aspx?direct=true&db=bth&AN=113072848&site=ehost-live
19. Eastman, J. K., & Liu, F. (2012). The impact of generational cohorts on status consumption: An exploratory look at generational cohort and demographics on status consumption. Journal of Consumer Marketing, 29(2), 93-102.
20. Eastman, J. K., Goldsmith, R. E., & Flynn, L. R. (1999). Status consumption in consumer behavior: Scale development and validation. Journal of Marketing Theory and Practice, 7(3), 41-52.
21. Eastman, J. K., Iyer, R., Shepherd, C. D., Heugel, A., & Faulk, D. (2018). Do they shop to stand out or fit in? The luxury fashion purchase intentions of young adults. Psychology & Marketing, 35, 220-236.
22. Festinger, L. (1954). A theory of social comparison processes. Human Relations, 7(2), 117-140.
23. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
24. Fournier, S., & Richins, M. L. (1991). Some theoretical and popular notions concerning materialism. Journal of Social Behavior and Personality, 6(6), 403–414. Retrieved from http://search.ebscohost.com.pallas2.tcl.sc.edu/login.aspx?direct=true&db=psyh&AN=1992-03672-001&site=ehost-live.
25. Gentina, E. G., Shrum, L. J., Lowrey, T. M., & Vitell, S. J. (2018). An integrative model of the influence of parental and peer support on consumer ethical beliefs: The mediating role of self-esteem, power, and materialism. Journal of Business Ethics, 150, 1173-1186.
26. Global luxury brands chasing China’s cash-rich millennials armed with family money. (2018, August 20). The Straits Times. Retrieved from https://www.straitstimes.com/asia/east-asia/global-luxury-brands-chasing-chinas-cash-rich-millennials-armed-with-family-money
27. Grossman, G. M., & Shapiro, C. (1988). Foreign counterfeiting of status goods. The Quarterly Journal of Economics, 103(1), 79-100.
28. Hair, J. F., Babin, B. J., & Krey, N. (2017). Covariance-based structural equation modeling in the journal of advertising: Review and recommendations. Journal of Advertising, 46(1), 163-177.
29. Hauck, W. E., & Stanforth, N. (2007). Cohort perception of luxury goods and services. Journal of Fashion Marketing and Management, 11(2), 175-188.
30. Hu, L.-T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling, 6, 1–55.
31. Hussain, A., Kofinas, A., & Win, S. (2017). Intention to purchase counterfeit luxury products: A comparative study between Pakistani and the UK consumers. Journal of International Consumer Marketing, 29(5), 331-346.
32. Ioane, B. R. (2016). Materialism in China-Review of literature. Asian Journal of Business and Management, 4(3), 99-110. Retrieved from https://pdfs.semanticscholar.org/7ae2/3e9216f1f8f2fcd14bb17e63cca071056b58.pdf
33. Jain, S., & Mishra, S. (2018). Effect of value perceptions on luxury purchase intentions: An Indian market perspective. The International Review of Retail, Distribution and Consumer Research, 28(4), 414-435.
34. Jianzhong, L., Peter, Z., & Stacey, C. (2017, March 22). Millennials and the future of business. China Business Review. Retrieved from https://www.chinabusinessreview.com/millennials-and-the-future-of-business/
35. Kapferer, J.-N., & Laurent, G. (2016). Where do consumers think luxury begins? A study of perceived minimum price for 21 luxury goods in 7 countries. Journal of Business Research, 69(1), 332-340.
36. Kidwai, F. (2019). Millennials: China’s new economic force. ChinaDaily. Retrieved from http://www.chinadaily.com.cn/a/201901/16/WS5c3ea92ba3106c65c34e4ca5.html
37. Kim, J.-H. (2020). Luxury brands in the digital age: Perceived quality and gender difference. The International Review of Retail, Distribution and Consumer Research, 30(1), 68-85.
38. Kim, J.-H., & Zhang, B. (2015). Attitude and purchase intent for luxury fashion goods: Cultural differences between Americans and Chinese. International Journal of Costume and Fashion, 15(1), 19-37.
39. Lei, P. W., & Wu, Q. (2007). An NCME instructional model on introduction to structural equation modeling: Issues and practical considerations. Educational Measurement Issues and Practice, 26(3), 33-44. Retrieved from https://pdfs.semanticscholar.org/9ca8/ddf0183e8543bdd6dd7049294de259609d16.pdf?_ga=2.79178388.1686947045.1592768956-1631704465.1590090476
40. Li, J., & Su, C. (2007). How faces influences consumption: A comparative study of American and Chinese consumers. International Journal of Market Research, 49, 237-256.
41. Li, J., Zhang, X-A., & Sun, G. (2015). Effects of “face” consciousness on status consumption among Chinese consumers: Perceived social value as a mediator. Psychological Reports, 116(1), 280-291.
42. Liao, J., & Wang, L. (2009). Face as a mediator of the relationship between material value and brand consciousness. Psychology and Marketing, 26(11), 987-1991.
43. Mckinsey & Company. (2017). Chinese luxury consumers: The 1 trillion renminbi opportunity. Retrieved from https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/Marketing%20and%20Sales/Our%20Insights/Chinese%20luxury%20consumers%20More%20global%20more%20demanding%20still%20spending/Chinese-luxury-consumers-the-1-trillion-renminbi-opportunity.ashx
44. Nabi, N., O’Cass, A., & Siahtiri, V. (2019). Status consumption in newly emerging countries: The influence of personality traits and the mediating role of motivation to consume conspicuously. Journal of Retailing and Consumer Services, 46, 173-178.
45. Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric Theory (3rd ed.). New York, NY: McGraw-Hill.
46. O’Cass, A., & McEwen, H. (2004). Exploring consumer status and conspicuous consumption. Journal of Consumer Behavior, 4(1), 25-39.
47. O ’Cass, A., & Siahtiri, V. (2014). In search of status through brands from Western and Asian origins: Examining the changing face of fashion clothing consumption in Chinese young adults. Journal of Retailing and Consumer Services, 20, 505-515.
48. Park, H.-J., Rabolt, N. J., & Jeon, K. S. (2008). Purchasing global luxury brands among young Korean consumers. Journal of Fashion Marketing and Management: An International Journal, 12(2), 244-259.
49. Richins, M. L. (1991). Social comparison and the idealized images of advertising. Journal of Consumer Research, 18(1), 71-83.
50. Roseman, A. (2017). China’s developing wealth continues to drive global luxury goods market growth. proactive. Retrieved from https://www.proactiveinvestors.co.uk/companies/news/253232/chinas-developing-wealth-continues-to-drive-global-luxury-goods-market-growth--4588.html
51. Schewe, C. D., Meredith, G. E., & Noble, S. M. (2000). Defining moments: Segmenting by cohorts. Marketing Management, 9(3), 48-53. Retrieved from http://search.ebscohost.com.pallas2.tcl.sc.edu/login.aspx?direct=true&db=bth&AN=4510833&site=ehost-live
52. Shin, H., Eastman, J. K., & Mothersbaugh, D. (2017). The effect of a limited-edition offer following brand dilution on consumer attitudes toward a luxury brand. Journal of Retailing and Consumer Services, 38, 59-70.
53. Simmers, C. S., Parker, R. S., & Schaefer, A. D. (2014). The importance of fashion: The Chinese and U.S. Gen Y perspective. Journal of Global Marketing, 27(2), 94-105.
54. Siu, N. Y-M., Kwon, H. Y., & Zeng, C. Y. (2016). The role of brand quality and face saving Chinese luxury consumption. Journal of Consumer Marketing, 33(4), 245-256.
55. Soh, C. Q. Y., Rezaei, S., & Gu, M-L. (2017). A structural model of the antecedents and consequences of Generation Y luxury fashion goods purchase decisions. Young Consumers, 18(2), 180-204.
56. Stępień, B., Lima, L. P., & Hinner, M. (2018). Are millennials a global cohort? Evidence from the luxury goods sector. Journal of Intercultural Management, 10(2), 139-158.
57. Stokburger-Sauer, N. E., & Teichmann, K. (2013). Is luxury just a female thing? The role of gender in luxury brand consumption. Journal of Business Research, 66, 889-896.
58. Su, J., Watchravesringkan, K., Zhou, J., & Gil, M. (2019). Sustainable clothing: Perspectives from US and Chinese young millennials. International Journal of Retail & Distribution Management, 47(1), 1141-1162.
59. Summers, T. A., Belleau, B. D., & Xu, Y. (2006). Predicting purchase intention of a controversial luxury apparel product. Journal of Fashion Marketing and Management, 10(4), 405-419.
60. Sun, G., Chen, J., & Li, J. (2017). Need for uniqueness as a mediator of the relationship between face consciousness and status consumption in China. International Journal of Psychology, 52(5), 349-353.
61. Tascioglu, M., Eastman, J. K., & Iyer, R. (2017). The impact of the motivation for status on consumers’ perceptions of retailer sustainability: The moderating impact of collectivism and materialism. Journal of Consumer Marketing, 34(4), 292-305.
62. Thompson, C. J., & Haytko, D. L. (1997). Speaking of fashion: Consumers’ uses of fashion discourses and the appropriation of countervailing cultural meanings. Journal of Consumer Research, 24(1), 15-42.
63. Tian, K. T., Bearden, W. O., & Hunter, G. L. (2001). Consumers’ need for uniqueness: Scale development and validation. Journal of Consumer Research, 28(1), 50-66.
64. Tokgoz, E. (2020). Impact of materialistic values on impulsive and compulsive consumption via status consumption: A research on young consumers. Business and Economics Research Journal, 11(1), 261-278.
65. Trivedi, A. (2018). China’s racing to the top in income inequality. Retrieved from https://www.bloomberg.com/opinion/articles/2018-09-23/china-s-racing-to-the-top-in-income-inequality
66. Vickers, S. J., & Renand, F. (2003). The marketing of luxury goods: An exploratory study - Three conceptual dimensions. The Marketing Review, 3(4), 459-478.
67. Vigneron, F., & Johnson, L. W. (1999). A review and a conceptual framework of prestige-seeking consumer behavior. Academy of Marketing Science Review, 1, 1-15. Retrieved from http://directory.umm.ac.id/articles/vigneron01-1999.pdf
68. Vigneron, F., & Johnson, L. W. (2004). Measuring perceptions of brand luxury. Brand Management, 11(6), 484-506.
69. Wiedmann, K. P., Hennigs, N., & Siebels, A. (2007). Measuring consumers’ luxury value perception: A cross-cultural framework. Academy of Marketing Science Review, 7(7), 333-361. Retrieved from https://cdn.ymaws.com/www.ams-web.org/resource/resmgr/original_amsr/wiedmann07-2007.pdf
70. Wong, N., Rindfleisch, A., & Burroughts, J. E. (2003). Do reverse-worded items confound measures in cross-cultural consumer research? The case of the material values scale. Journal of Consumer Research, 30(1), 72-91.
71. Yang, F. X., & Lau, V. M. (2015). LuXurY hotel loyalty – A comparison of Chinese gen X and Y tourists to Macau. International Journal of Contemporary Hospitality Management, 27(7), 1685-1706.
72. Zhang, B., & Kim, J-H. (2013). Luxury fashion consumption in China: Factors affecting attitude and purchase intent. Journal of Retailing and Consumer Services, 20, 68-79.
 

IJCF

The Korean Society of Costume

Hanshin Bldg. #1616, 12, Mapo-daero, Mapo-gu, Seoul, Korea, zip code 04175
Phone: +82-2-324-1711 ⏐ Fax: +82-2-324-1511 ⏐ Homepage: http://ijcf.ksc.or.kr/ ⏐ E-mail: ijcf@ksc.or.kr