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Analysis for three classes of consumption in China
2006 Living Report of China issued commonly by MasterCard International Organization and China National Conditions Research Association points out that there are actually three consumption classes in China at present. “The first class” refers to the consumption for self-enjoyment and individualization life. “The third class” refers to “poor type” consumption level. Of this class people face a big problem of “desiring to buy but there is not enough money”; while those “struggling white collars” belong to the second class; though they are free of worrying about food and clothing, which is still far from their self-gratification. People of the second class are relatively reasonable and realistic, living as most other people.
In their study, “the first class” refers to the consumption groups supported by high income, accounting for 15% of urban residents of target cities investigated. People of “the first class” often go to bars, cafes, clubs, cinemas and buy up to date digital and electronic products. They enjoy elite and digital daily life. This is a group that has the biggest purchasing power. They take concept of consumerism but not inhibit their consumption desires. They have high taste for fashions; more than 70% of them once bought vogue magazines, clothes, watches and perfumes.
For “the second class”, dwelling houses, education and travel are their three consumption desires. Obviously, people of “the first class” are not of large number, but they master the most of consumptive resources, dominating the orientation of consumption society. However, in China, the consumption life of people in “the second class” really reflects the living actuality of Chinese people now.
Consumption Actuality of Chinese Luxurious Products
It is reported in the research report on Chinese luxurious products issued by Goldman Sachs---an international famous investment bank that “marketers underestimated the opportunity brought by income increase of Chinese consumers to luxurious products consumption; China has become the fourth biggest country in consumption for luxurious products. China is a very attractive market for luxurious brands.
According to statistics of Morgan Stanley Company, the number of Chinese potential consumption groups for luxurious products is 8% of its total population, about 100 million people; but the actual number of people for luxurious products consumption is 1%, that is, 13 million.
In recent years, consumption on luxurious products in China has actually developed rapidly. However, it is mostly a superficial phenomenon actually. There are two stages for consumption on luxurious products. The first is conspicuous consumption and the second is self-gratification consumption. Due to some historical factors, people that have capacity to buy luxurious products in China are young mostly, about in their thirties or forties; young people have habits of pursuing fashion, so Chinese people’s consumption mode for luxurious products are mostly conspicuous consumption.
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