The luxury market in China has grown significantly in the recent years. The target for luxury market in China is because of the youths. Because of dramatically change in the living standards of Chinese, its vast consumer market is going under fundamental change. The most significant pattern is the increasing manifestation of behavior and increase in spending in comparison to the other nations in the world. A fast growing segment of the population under age 20-25 years, is becoming more self indulgent in purchasing activity, making choices, and taking decisions for buying and is becoming more loyal to their favorite brands. This loyalty is for the brands even while maintaining the traits for which Chinese consumers are renowned, for example spending most of the time in stores in comparing the brands instead of buying products.
A dichotomy is increasing more rapidly than ever expected between these segments and also on the broader mass of consumers who are in their early stages having keen desires for goods and services that exceeds basic needs. This is the reason why cosmetics industry is emerging rapidly among the youth in China. The Chinese urban population is the main target for the cosmetic companies as their spending is increasing and lifestyle is changing fundamentally.
Chinese consumers are extraordinary optimistic and positive regarding the increase in their income and lifestyle in comparison to elsewhere in the world. This leads to rebalancing the economy in a healthier direction with greater dependence on consumption and less on business investment in China. From the report (Mckinsey, 2013) it is clear that 100’s of millions of early stage users have desire of goods and services in the skin care or cosmetics sector. The remarkable phenomenon is because of the highly increasing segment in this youth of China. Most of the youths who live in wealthier cities, coastal areas or having relatively higher income range towards the upper end of the scale. The private consumption is increasing in China, and also the economy is improving.