Essay On Luxury Goods

792 Words4 Pages
Luxuries and their effect on economy
INTRODUCTION
The global luxury goods industry, which includes drinks, fashion, cosmetics, fragrances, watches, jewelry, luggage and handbags, has been on an upward climb for many years.
. Although the technical term 'luxury good ' is independent of the goods ' quality, they are generally considered to be goods at the highest end of the market in terms of quality and price. The world today allows the consumers to make an unlimited amount of choices when choosing to buy a product. Even when buying a simple t-shirt there are a vast number of brands that may be considered, ranging from Zara to Gucci. A parsimonious person may opt to buy a cheap modest t-shirt that simply gets the job done; as long as it fits, the person may not mind which brand is from. However, many people will often prefer to spend for the T-shirt that come from brands
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2. BACKGROUND INFORMATION
2.1 Definiton of “luxury”
According to Merriam Webster, luxury is : "something adding to pleasure or comfort but not absolutely necessary”. This definition reflects the fact that brand name goods offer more utility to a buyer despite a higher price tag.
In economics, luxuries are defined as products that increase in demand as income gets higher. Shortly, they are goods that are not necessary but desirable.
For the purposes of this paper, I will focus on product categories that contain relatively large sample sizes, such as handbags, jeans, clothes, and jewelry. From these product categories, brand names that are generally considered boutique or upscale will be mentioned. Some examples of notable brands that will be discussed in this paper include Louis Vuitton, Gucci, Zara etc.
2.2. The Current State of Luxury Market and the most valuable

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