Abstract

China's luxury retail market is undergoing a transformational shift from an artificial level of demand driven by gift-giving to a more sustainable level driven by personal consumption (Pwc total retail, 2017). The middle-class, Chinese Millennials aged from 19 to 35, is one of the driving forces for luxury brands. Luxury brands concentrate their efforts on apparel (shoes, jewelry, and handbags), the three fastest-growing product categories which account for the bulk of the market. Choices made by young people are closely bound to their self-concept, and are used both as a means of self-expression and as a way of judging people and situations (Piacentini & Mailer, 2004).
Born during the “One-Child Policy" period, the Chinese Millennials benefited significantly from the economic reforms, and became a privileged generation, a dominant force and an influential customer segment in the retail market. Thus, this study aims to investigate the influencing factors (public self-consciousness, brand consciousness, susceptibility to interpersonal influence, brand consciousness, peer communication through social media and culture values) that affect Chinese Millennials towards the purchase intention for luxury fashion goods.
The research findings show that susceptibility to interpersonal influence mediates the relationship between public self-consciousness and brand consciousness, and brand consciousness mediates the relationship between public self-consciousness and purchase intentions. In addition, results indicate that cultural values (Collectivism, Masculinity, Uncertainty Avoidance, Long-term orientation, Indulgence) positively influence the effect of public self-consciousness on purchase intentions of luxury fashion goods. In terms of the managerial implications, the result of the relationship between public self-consciousness, susceptibility to interpersonal influence and brand consciousness provides some insights into marketing strategies to position luxury brands in China, and communicate with millennial consumers.
Brand managers, in the field of luxury fashion goods, would benefit on their strategies by: strengthening brand equity, focusing on shared values among social members and paying attention to cultural characteristics (collectivism, masculinity, long-term orientation, indulgence, and uncertainty avoidance) in order to better attract the millennial consumers in China.
Keywords: Luxury fashion goods; Chinese Millennials; Public self-consciousness; Cultural values.