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  • Luxury isn’t discretionary in China, it’s compulsory
  • Luxury isn’t discretionary in China, it’s compulsory
    Elle (2015) ©
REPORT

Why luxury is a way of life in China

Renowned for an insatiable appetite for luxury, within ten years China will account for 50% of global luxury purchases. But as discretion becomes the mark of distinction, who are these luxury consumers, how are their tastes evolving and what compels them to part with their cash?

Location China

Scope
The Chinese term tuhao refers to a stereotype of some of the nouveau rich, who’re crude, uncultured and favour flashy displays of big spending. Once famed for a love of all things ostentatious, the disdain expressed in response to Lamborghini’s late 2014 ad spot targeted at men who exhibit this attitude speaks volumes about a behaviour that’s fallen out of favour in China – if anything, it’s embarrassing. [1]

The country’s luxury market is undergoing seismic shifts, triggered by evolving customer dynamics, an influx of new luxury labels and economic slowdown. Luxury conglomerates like LVMH and brands ...

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