Is it the end of the “logomania” in China’s luxury market?

The objective of this research is to understand whether Chinese consumers have become less conspicuous in their luxury purchases, hence if their interest in logos has decreased. An analysis of 1st tier Chinese consumers within the "Clothing" and "Accessories" luxury segments was conducted in order to investigate this trend. Our research followed a four-step approach. We first analysed where Chinese 1st tier cities stand in terms of luxury development, following Chadha and Husband's "spread of the luxury model". Secondly, we evaluated if it was possible to identify different consumer groups having reached different luxury adoption stages in order to find new ways to segment the Chinese luxury market. Thirdly, we analysed what motivated Chinese consumers to purchase Aspirational Personal Luxury goods through an analysis of China's history, culture and socio-economical features. Finally, we identifed factors that could influence the Chinese consumers' motivation to purchase ostentatious luxury goods. Conclusions of this research showed that logo-consumption is decreasing in the "Clothing" and "Accessories" luxury segments, but the Chinese elite is not becoming less conspicuous. There simply has been a shift in what is relevant to them. Logos tend to disappear due to consumers finding new ways to define and express their status. In fact, we found that the concept of conspicuousness cannot only be reduced to overt signals such as logos. Subtle luxury purchases can also be conspicuous, as long as their objective is to enhance status.