Luxury Goods

Luxury goods are no more just the forte of higher income groups or celebrities. In fact, the brands manufacturing these goods are very well percolating down to serve even the middle-income groups. Luxury goods are yet not the goods which every body needs in routine life ,instead these goods are to show off the status symbol and mostly selected by the people who are either too brand conscious or demands high customization. Luxury goods may be anything ranging from a jewellery, car, perfume, handbags, and even chocolates.

With increase in income and for that matter increase in disposable income is giving rise to the manufacturing of luxury goods. Apart from the rising demand of such goods from different segments of the consumers, the manufacturers are also encashing on the ever-increasing size of this market, looking at the shrinking margins in highly competitive mass market. As luxury goods offers higher profit margins for the manufacturers too.

Today manufacturing of Luxury goods takes place in all the major countries of the world and the top ten markets for purchasing these luxury goods are United States, China, JAPAN, Hong-Kong, Germany Italy, Spain, Switzerland, France, UK, and Brazil. These countries account for more than 80% of the luxury goods manufacturing in the world.

With trends like globalization, diversification and consolidation the luxury goods market is spreading its arm. Because globalization ensures better availability of these goods throughout all the major markets and inflow of tourism leads to the purchase of luxury goods. While consolidation refers to the growth of companies selling luxury goods and their emergence as big brands like Gucci and Richmonte. In addition, diversification of brand towards luxury goods to earn more profit margins is again ensuring that the demand for these goods meets proper supply through out the world. Luxury goods are the latest craze amongst youth segment.

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