Chinese consumers' crazy appetite for luxury goods and services appears unstoppable, with just 2 percent of the Chinese population responsible for one－third of the world's luxury items.

        As China's economic miracle develops, the market opportunities for all sorts of luxury goods and services are increasing. Luxury consumption in China now extends ways beyond well－known car, clothing and jewelry brands. For example, the luxury jet market in China is the fastest－growing in the world, even outstripping that of the United States, with a market share of 25 percent. This trend appears to continue, with 20 to 30 percent growth expected in China, compared with only 2 to 3 percent in the US. But more importantly, China's luxury jet market growth represents a major development in the private consumption of luxury items.

        China's high－quality red wine market also provides evidence of the growth in private consumption of luxury goods. In 2013, China became the largest market for red wine in the world, even overtaking France, with 1.86 billion bottles consumed in China last year. Over the past five years, China's red wine consumption has grown 136 percent.

        According to my ongoing consumer research in this area while working at the University of International Business and Economics in Beijing, public consumption of such expensive global luxury brands such as Prada and Armani is easily explained by the desire to “gain face” and publicly display social climbing through material possessions. On the other hand, it is “self－reward” that lies behind consumer motivation in this area. Chinese consumers who have experienced rapid financial and economic gains appear particularly prone to the need to reward themselves for their success. But this has little to do with “gaining face” and impressing others and much more to do with the need for personal contentment.

        Finally, the growth in private luxury consumption in China is set to continue in part due to the maturity of the Chinese consumer and advancement of Chinese consumer culture generally.