The Overconsumption of Luxury Items in China
Introduction
Chinese luxury goods market has grown dramatically over the past decades. According to a report released by Bain & Company (2012), currently, Chinese consumers occupy about 50% of the luxury purchases in Asia, and nearly 33% of those in Europe. Globally, one in four purchases of individual luxury goods comes from Chinese customers. Therefore, overconsumption of luxury items in China is a problem which should be given attention to. This problem will lead to a series of negative impacts on economy, society and environment, such as bustling counterfeit markets, distorted values, and damaged environment which could present significant challenges for China even all over the world. The purchase of luxury goods by Chinese consumers may be motivated by different factors from the aspects of economy, society and culture.
This report will identify the impacts, analyze the causes, and consider possible solutions of this problem.

Impacts
Three aspects could be affected by the overconsumption of luxury items in China: economy, society and environment.

To begin with, the overconsumption of luxury items would result in thriving counterfeit markets and threatened domestic businesses. Due to the demand for luxury goods, a bustling counterfeit market has been established, with counterfeiters offering replicas of luxuries at much cheaper prices than the authentic counterparts. For a country as a whole, this counterfeit market has two main negative impacts on economy. For one thing, it will hinder foreign direct investment (FDI). A robust and well-enforced intellectual property rights legal system is a key requirement for multinational companies to decide to invest in the destination country (International Chamber of Commerce, 2013). They may consider whether their investments made in production will
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