Western luxury brands in the Chinese market: The impact of digital communications on the new generation of consumers

Abstract

The new Chinese consumer generation has been developing unique features compared to the previous ones, as well as the desire to embrace contemporary Western lifestyles, especially when it comes to luxury consumption. However, due to differences between Chinese and Western cultures, Chinese consumers tend to perceive luxury based on their specific cultural background. Furthermore, as a consequence of the speed of technological development of the last decade and the broad internet penetration, Chinese consumers have developed a strong involvement in online platforms and social media; therefore, Western luxury brands are strongly investing in digital communications in China. The purpose of my dissertation is to understand how Western luxury companies approach Chinese consumers in terms of digital advertising and social media communication, and to analyze the resulting effects on the young segment of consumers, namely Millennials. How can digital communication and social media transmit the values of a luxury brand to consumers? How should firms enhance consumer engagement toward brands and products through social media? What is the impact on consumers? The present study, which was conducted on both consumer and firm sides, aims at understanding the modern Chinese luxury market, providing useful insights on how luxury brands leverage on social media to impact Chinese consumers.