Feasibility Study On The Strategy Of Democratization Of The Chinese Luxury Goods

In the past times, luxury had been a way for the noble to show their wealth and social status off, which belongs to behaviors of the minority. However, with the times and cultures changing, people's viewpoints toward luxury have altered. Trading up has been a prevailing phenomenon while new luxury also has come out gradually. As long as Consumers regard the products as worth through the affective facet, they will be willing to make purchases with higher prices.Based on the classical theory of luxury, this study tries to explore the trend of democratization in luxury industry. Luxury is industry with long history and many fantasy tales, evolving with times and ages. It delivers not only functional value but also experiential and symbolic value. Under the global movement of democratization, luxury is not what is used to be. Through in-depth interview with luxury users in China, it analyzes the market and consumer of this accessible new luxury. Democratization will significantly influence the behavior of consumers and markers. Under Hong Kong Dream Formula, the dream value of luxury will increase with the purchase and awareness, which is a good news for the luxury brands to seek a democratization way in China. In another aspect, Coach has proved the power of democratization in fierce competition and wins a higher growth compared to LV.The study result found that since the Chinese market is under developed and the supply of luxury can not match the demand in this fast growing market. New luxury and traditional luxury target different market segments, and new luxury can satisfy middle class consumers which are growing with tremendous speed. Democratization would be a promising marketing strategy for luxury brand performing in China market.