why i am talking about the worldwide luxury? the
Nowadays, luxury is almost everywhere. The global demand for luxury goods is rapidly growing. The appetite for European and American luxury brands worldwide is especially strong. Why I am talking about the worldwide luxury? The following chart, conducted by Bain Company, a global management consulting firm, made me think about the current worldwide situations in luxury markets. It shows that luxury consumption spans across several categories around the world from luxury cars to luxury food and travel
First of all, I was planning to give you a short definition of luxury and what exactly a luxury good is, but unfortunately there is no single definition of luxury. Most of them do refer to exclusivity, prestige, elegance, style, highest standard, differentiation and to goods, which are priced excessively above their functional utility (see the shoes), sold in exclusive stores and boast unique consumer experiences. However, it was possible to find out the actual world's top ten most valuable luxury brands (Luxatic 2014) check out the illustration. Of course, LVMH (Louis Vuitton Mot Hennessy), the largest luxury good producer in the world, tops the list with its brand Louis Vuitton.
In this context the brand personality can be seen as replica louis vuitton bags a key ingredient for luxury brands like Louis Vuitton. This assumption is high quality designer replica handbags supported by Okonkwo (2007), who says "The personality of a luxury brand is crucial for accurate positioning in the consumer's minds". According to Kardes et al. (2011) brand personality refers to the set of human characteristics associated with a brand so the task for LVHM is to select certain personality traits to complement the core Louis Vuitton luxury attributes. Furthermore, the brand personality should be defined, memorable and affirmative; otherwise an unclear brand personality will persuadeconsumers to seek alternatives like Gucci, Prada, and Chanel
We can assume that LVMH did a very good job in developing the brand personality for their fashion brand Louis Vuitton. Let's check out the following ad to my mind, there are able to develop a very elegant, subtle, comfort and classy brand personality.
Russian model Natalia Vodianova poses in Paris in this handout photo taken in 2007 for the new advertising campaign of French luxury goods company replica louis vuitton bags from china Louis Vuitton. This campaign features six supermodels of the past 20 years designed to promote its women spring summer 2008 cheap louis vuitton bags from china uk collection. REUTERS/Louis Vuitton/Handout (FRANCE). EDITORIAL USE ONLY. NOT FOR SALE FOR MARKETING OR ADVERTISING CAMPAIGNS. NO ARCHIVES.
high quality replica handbags china One example, besides the Western World, is China, where wealth is becoming a trend. and surpassing Japan (Deloitte 2014). Could this mean luxury goods becoming mass produced goods?At the moment Western luxury goods are in demand, but for me it is only a matter of time before the Chinese develop aaa replica designer handbags their own luxury brands to conquer the world market!
WHY are luxury goods so popular worldwide?
According to Wiedmann et al. (2007) customers luxury value perceptions are tied to financial, functional, social and individual utilities of the brand.
Financial dimension address direct monetary aspects (price and investment);Functional dimension address quality, uniqueness, and usability of the product;Social dimensions address how the product will be perceived by peers in the social group;Individual dimension include personal orientation to luxury, hedonistic and self identity value.
These mentioned factors are the same worldwide; differences between cultures are placed on the diverse dimensions. As I mentioned it in one of my previous blogs, the process of cultural homogenization as an aspect of cultural globalisation might explain why worldwide preferences, tastes, and attitudes have become homogenised.
Frank (1999), who wrote the book "Luxury Fever", explains that the main reason we buy cheap louis vuitton bags from china luxury goods is to demonstrate to others that we can afford to, thereby trying to distinguish ourselves from them. In this way, we try to achieve happiness by improving high quality replica handbags china our relative status. Furthermore, Frank says that the irony is, however, that this absolutely does not work! In his eyes, the satisfaction we get from luxury spending lasts only shortly. fake designer bags Well, his replica louis vuitton handbags views are split about the main reason, but this is the most obviously a big one for most people. In addition, the question of "can money buy happiness" is another very multifaceted topic with several different opinions.
For more valuableinsights regardingglobal luxury consumers watch the following video "The Global Luxury Consumer True Luxury Global Consumer Insight" conducted by BCG and Fondazione Altagamma.
All in all, luxury consumption is a very complex topic and an interesting field in consumer psychology. There are manymore theories and studies available, which can explain the reasons why people buy luxury goods and why the demand is still rising all over the world. Maybe the following quote might sum up the phenomenon of luxury good consumption:
"A house may be large or small; as long as the surrounding houses are equally small, it satisfies all social demands for a dwelling. But if a place rises beside the little house, the little house shrinks into a hut." (Karl Marx).
The so called "cross pollination" (D'Arpizio 2014) of luxury spending, is not just found in the neighbourhood it is a worldwide matter! Indeed, this also leads to the fact that luxury marketers have to think about their product offering from a more global perspective. Well, we identified an ongoing goods, but another point is: when willthe growth end? fake louis bag I will consider the state needs 1:1 replica handbags and wants, and the term overconsumption in my next blog, regarding the view that is not a necessity look forward to your comments!Deloitte, 2014. Global Powers of Luxury Goods, London.
Kardes, F., Cline, T. Cronley, M., 2011. Luxury Fashion Branding, Basingstoke: Palgrave Macmillan.