The purpose of this study is to explore the distinctions of luxury consumption motivations between Chinese and Japanese youth in the context of institutionalized individualization. It compares the different consumption motivations among Chinese and Japanese young people, as well as their respective inclinations between traditional and individualist consumption. It aims at identifying the underlying social factors that influence and contribute to the luxury consumptions in today’s China and Japan. Individualization theory is applied in this study to help understand the root of the differences (and similarities) between Chinese and Japanese luxury consumption motivations, especially their individualist tendency in luxury consumption today. The study uses mainly qualitative methods in a case study of the Core Region of the Yangtze River Delta in China, however, quantitative approach also has been used when deal the statistical data. The research methods adopted in this study are questionnaire survey, semi-structured interviews and document analysis. The research findings indicate the obvious difference of luxury consumption motivation and practice between Chinese and Japanese youth: the Chinese incline to be private self-conscious consumers who are influenced more by personal effects and the luxury consumption in China express obviously individualistic tendency; whereas the Japanese incline to be public self-conscious consumers who are influenced more by interpersonal effects, the luxury consumption in Japan inclines to be collectivist traditional one while individualistic tendency emerges. However, the research also finds, in the context of institutionalized individualization, there is also common place between Chinese and Japanese luxury consumption: both the Chinese and Japanese youth try to seek balance between the individual and the society even in consumption field. Furthermore, the study also contributes knowledge about the variety of individualization, it display the distinctive individualization paths of China and Japan from the perspective of consumption.