From China to the World: What Drives China's Taste for Luxury and what it means for Luxury Brands

China’s rising significance in the different segments of the luxury industry is related to the longstanding presence of luxury in its history and culture. Luxury is intertwined in gift-giving traditions and an elaborate understanding of social networking and appropriate connections (Guanxi). China’s position at the forefront of luxury is supported by the country’s economic growth, increasing salaries, the development of major urban centers, and an increasingly educated customer base. Chinese customers have seen their influence grow not only through socio-economic phenomena such as outbound tourism but also through specific tastes that brands cater to by including Chinese elements into their designs and identities. This convergence of historical, cultural, social, and economic factors puts China in a unique position on the luxury map.