China Luxury Market Apparel

China Luxury Market Apparel Name Instructor`s name The course title The Date Institution When studying about the china economy it is evident that a rise in the middle class with high spending trends is lacking. Instead, state-owned firms, state-led investments, and large gap of inequality dominate the economy. Instead of the middle class living in towns increasingly, they are divided into small upper class that has a trend of spending freely on luxury products and services, the other population`s earning and savings are drained by state deductions in addition to inflation (Pierre & Pras, 2011). Pendle & Stiles (2009) assert that, alongside the China growing economy, there is high consumption in things such as jewellery, cars, clothing, leather goods, furniture, and construction materials. There are things that are associated with the high spending class; these consumer goods take a third of all the retail consumption in China. The spending trends of luxury goods are currently on the rise; consumers are becoming more brand-aware and status conscious in the markets, hence luxury apparel is becoming a focal point for mid-to-high priced retailers. The consumer of apparel products evaluate the renown brands more favorably as they become more value and status conscious, indicating that luxury products does not necessarily mean purchasing extravagantly. Social influence is a major drive for apparel products consumption. Consumers` knowledge about the luxury brand vendors affects their decisions when choosing where to spend. Uniqueness of products is an important factor that attracts many consumers as opposed to the popular brands that are rampant over the population as stated by (Guoxin, Guofeng& Zephaniah, n.d). Baker (2007) states there are some most prominent luxury apparel market contributors such as LVMH, Gucci Group, Burberry, Christian Dior, Louis Vuitton, Richemont and Giorgio Armani. Wal-Mart does not do well in China. The reason behind this is that, everything is cheap in China - the source of supply is cheap for everyone. In these markets, women products take the best portion of the goods sold, almost doubling. China, United States and Japan are in the same level in luxury goods, China is considered the second largest economy in terms of buying power. Pendle & Stiles (2009) state that in emerging markets, China has one of the fastest growing economies with a consistent rise of the GDP trend over the recent years. This is due to its government concentration to raising individual income and consumption amongst its population with a future increase in the spending power expected due to the rising number of upper-class elites. Some international luxury companies such as The Luxury Council believe that China leads Japan as the largest market for luxury goods. Though the swift rise of the Chinese luxury market is accredited largely to currency fluctuations, this growth is largely attributed to its population having an increasing wealth and confidence in their earni...