Based On The Influence Factor Of China's Luxury Goods Purchases Of Luxury Goods Industry Research

The Chinese luxury goods market is growing rapidly over the past few years with industry average CAGR over20%under the trend of steady macroeconomic development, continually rising spending power and increasing wealth of high-net-worth individuals. The market is bound to be a new focus for academia for Economics.The article uses a combination of Economics and Management, academic research, theoretical study, case study and empirical study to analyze Chinese luxury goods market.. From the perspective of economics, the global luxury goods industry was analyzed by using the SCP model in industrial economics, and so as well the luxury goods industry in China afterwards. From the perspective of management, the consuming behavior of Chinese luxury goods consumers was empirically analyzed based on the economical analysis above. Combining the conclusions reached from the economical and management analysis, the thesis finally provides China domestic luxury goods group with suggestions.The thesis starts from the concept of luxury goods, analyzes the luxury goods industry by SCP model, and reaches to the conclusion that luxury goods industry is highly concentrated and profitable; it has remarkable region of origin effects and brands effects; Through analyzing the case of LVHM-the world’s largest luxury goods group, it can be concluded that M&A is the driving force of collectivization in the luxury goods industry; the luxury goods group expand their size through M&A, and create synergy effects.The thesis thereafter analyzes the luxuries industry in China. Since China is still in the initial stage of luxury goods consuming and the luxury goods industry chain has not well-integrated, the research has to be made based on the current situation of luxury goods industry in China. It can be concluded that China’s macro and policy environment has positively boosted the development of luxury goods industry; China’s luxury goods market is in the incipient stage as well as its resource allocation; there are barely any domestic luxury brands.Eying on the Chinese luxury goods consumer, the empirical study that aims to study the determinants on consumer demands has made a conclusion that there is significant difference in influencing the luxury goods consumption among various income groups between Chinese consumer behavior, price utility and sense of controlling others; in addition, flaunting, quality perception and country of origin is positively correlated to luxury goods purchasing.Based on the result from the aforementioned industry analysis and empirical study, the article provides the theoretical and empirical reference to the development of Chinese domestic luxury goods companies hereunder:1) China must boost the development of domestic luxury brands;2) Chinese luxury goods companies can use mergers and acquisitions to explore a viable development path, and3) Chinese luxury goods companies must utilize the special spending motive of the Chinese consumers to steer the marketing strategies.