The luxury industry was a concentrated industry, and LV was one of the dominated brands in this field, which allowed it to have great power as suppliers. The positioning of LV was different from other luxury brands, which allowed it to avoid losing supplier’s power due to homogeneity competition. Powerful buyer As a big company, LV had great bargaining power when purchasing raw materials. With large demand on components such as leather and zippers, LV could bargain around different suppliers and pull down the price of the material. Substitutes Because of the special meanings and designs attached to luxury goods from their brand, it was hard to find any substitutes of luxury goods.
Consumer’s Bargaining Power - moderate to high Level of Dependence on a buyer - The industry depends heavily on top-tier customers, which are the celebrities and are usually early adopters and can influence consumption of the masses.The industry is very driven by a small group of top-affluent consumers but these affluent buyers have no impact on the premium price since brand's positioning and appeals as an exclusive luxury brands due to its high quality products. Number of buyers - The increasing number of buyers relatively to suppliers, rising wealth household of middle-class buyers in China. The concept of affordable luxuries are increasing in second-tiers city and satellite towns. Switching Costs - The luxury industry who is based on
These laws that have been created is beneficial to the rich. The ones responsible creating these policies are the ones who want the lower class to suffer to gain money. Peace is granted to the upper class because of the power they have ignoring the poor. The state needs wealthy allies to become powerful and richer which the laws that are created limit the poor having no access to
Prada, Chanel, Dolce & Gabbana, Versace… these are all brand names familiar to almost everyone. They are known to be fancy and obnoxiously expensive. Yet despite the fame of the latter brands, people are unaware of the lesser known name that is behind the glory of these designers. Luxottica is a glasses and eyewear company that controls 80% of the major brands in the global eyewear industry. “Products in some industries seem to only get better and cheaper -- laptops, for example -- while other products, like eyeglasses, remain strangely pricey, with only superficial innovation…” claims Colombia University law teacher, Tim Wu.
People consider buying luxury brands that unique, scarce and expensive in comparing to the brands in its category is an indicator of the person's prestige, image and social status (Sheetal, 2015). Customers that has external locus of control and influenced by others opinions are focusing on delivering uniqueness and wealth signals messages for society. But customers have internal locus of control have not influenced by others' opinions are focusing on satisfying their own needs such as quality and hedonic needs. For collectivistic culture, customers are
This way of behaving usually happen to the rich people who love to spend lavishly. Considering that they are sort of branded obsession, the rich people is likely to show the power by buying branded materials and not only the simple brand materials. By way of example, there are numbers of branded goods such as Armani, Charles & Keith, Channel, Gucci and Prada. This leisure interest which is shopping consequently can lead to different social status between people from the upper class and the lower class groups. Perhaps, the social gaps will not happen clearly if one is still at school.
Like other aspects of dress, the image conveyed by different handbags manifests social divisions, and dimensions of class, gender, and age. Expensive designer handbags, for instance, signify wealth and status, whilst getting caught with a ‘fake’ can disrupt the authenticity of performance. With all that in mind, I will create high quality bags but expensive because this is one of the ways that people can look at it as a brand of a high class. Desire for my bags will be created out of the interest that people already have and I will also create a room where I can design bags of different shapes and sizes depending on the needs of my customers. If all that is done I will make sure that I create a good show room or display where people can easily see and try to fit the bag with their dress designs which will motivate them to buy thus creating more
When you buy an expensive shirt from a well-known brand, you sometimes receive a free belt or necktie to further your styling possibilities. This is generally done as a means of justifying the high price of the garment, which is why less expensive dress shirts don’t offer the same accessories. Because of its low price, the Marquis Signature Slim Fit Dress Shirt does not come with any included accessories, but you’ll be more than able to afford them with the money this dress shirt will save you. Overview of
These brands particularly target those with a high income so the prices of their products tend to be more expensive than Target or Big W. These high end brands majority of the time produce a good quality item, leaving the consumer especially the younger ones wanting more. But they do not specifically target a young audience as David Jones sells a variety of products such as kitchenware, bed linen, furniture, baby clothes etc.
Cons: 1) More risk for business as H&B is not much popular and competition is high in this industry 2) Might not be as good as previous collection, because sparkle collection of earrings was much liked by the all age groups. • Building the brand. Pros: 1) Increase in sales because people trust branded products more and prefer to try them. 2) Provide worldwide customers if the brand is more popular and good at customer reviews. 3) Secure from copying of designs, this is the major problem faced by every designer product because low budget businesses provide replica to the customers at low prices.