What Will Trigger a Non-buyer to Become a Buyer in China’s Luxury Goods Market? Cultural and Demographic Influences

Abstract

The purpose of this study is to identify what triggers Chinese consumers to become a luxury goods buyer from a non-buyer. The objectives of this study are: (1) to compare Chinese luxury goods buyers and non-buyers by examining their key differences; (2) to identify potential cultural and demographic determinants of Chinese consumers’ final purchase of luxury goods; and (3) to explore the effective strategies of how to trigger more consumers to purchase luxury goods in China. A survey was conducted in summer 2016 in China through WeChat, a social media app, and a total of 1,549 returned questionnaires were useful. Factor analysis, MANOVA, and logistic regression were chosen for data analyses. The results show that Chinese luxury goods buyers and non-buyers are significantly different in both cultural orientation and demographics. Chinese luxury goods buyers are short-term oriented, individualism focused, and power/status focused, whereas non-buyers are more long-term oriented, collectivism focused, and less power/status focused. They show significant differences in education level, family income, and location of residence. Chinese luxury goods buyers are more likely to be consumers who have higher family income, have higher education level, and live in more advanced and developed cities. Non-buyers have strong interest in luxury goods and show strong purchase intention. The high price point is the main issue. When they are ready to make the first purchase, they are more likely to buy luxury watches, clothing, cosmetics, or accessories in mainland China off-line. Implications and limitations are addressed.