The Importance Of Global Luxury Brands

The concept of "luxury" comes from the Latin "luxuria," which means "extras of life" (Danziger, 2005). It is ‘excess, abundance, extravagant life’ which defined in Oxford Latin Dictionary, 1992. Luxury has always been a key component of international trade. Some have historical records and archaeological evidence across several millennia of human history, showing the importance of brand items such as porcelain, silk, furs, jewelery, fragrances, and spices (Jamie Plotnek, 2015). From this study, it focuses on those luxury brands that are well known internationally. In fact, 7 of the top 100 global luxury brands which are known across much of the world could be luxury products: Hermes, Louis Vuitton, Tiffany, Cartier, Gucci, Armani and Burberry

Several research institutions routinely report on the considerable value of the luxury goods market. The U.S. and China represent two of the most important luxury brand markets in the world. Verdict Research predicted for instance that it would be worth roughly £225(RM1,374.75) billion by 2012 globally by 2012 (Clark, 2011), while Bain & Company (2010) reported that demand for such luxury accessories as handbags and shoes in particular was increasing year after year in China. The United States is the largest luxury market in the world, with Luxury spending more than twice that of second place, Japan. Both Dior and Gucci Group have seen sales dip in Asia in the past years and whilst the growing middle classes across Asia seem intent on spending more of their wealth on high-end goods. Sales in the luxury sector have been booming, and much of this can be attributed to demand from Asia (Michel Phan,

It lead to consumer buying power has escalated accordingly compared to last decade and country’s fast-rising middle class segment is driving demand for consumer goods. This materialistic tendencies are accompanied by a desire to use product ownership as a means of aspiration and status (Steven Lysonski, 2014). In Malaysia, there are several brands can be found Gucci, Coach, H&M and Charles & Keith. Although there are a plenty of moderate brands available in Malaysia, the society in terms of consumption, is not influenced by the moderate brands with reasonable price and even change to a luxury brand consumption. For instance, people tend to buy a luxury brands like Louis Vuitton or Chanel compare to moderate brands like Zara or Armani Exchange. By looking on the increasing amount and size of luxury brand retail’s site in Malaysia, with the emergence of high premium retail’s sites that sell international fashion brand names such as the Starhill, Pavilion in the Kuala Lumpur and Johor Premium Outlet in Johor. This reflects that Malaysian consumers have a tendency to buy branded goods in some way for foreign luxury brand product and indeed, the fashion retail sector in Malaysia may grow swiftly as the higher demand for the luxury branded goods (Ai Leen, Ramayah & Jasman,