Global Luxury Brands and Recession Essay

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Global Luxury Brands’ Strategies to Fight Recession Global luxury brands’ strategies to Fight recession Choi Soon-hwa Luxury brands are actively responding to the latest economic downturn, said to be the worst since the Great Depression, racking their brains to escape the grips of the falling luxury goods market. Indeed, the hit to sales has been particularly bad as industrialized nations, traditionally the main luxury good markets, have suffered greatly. With luxury goods consumers having become more diversified by region, class and age, and an increasing number of luxury brand companies adopting professional management structures, luxury brands are approaching their |Figure 1 marketing and brand strategies in a more systematic…show more content…
They remain loyal to the brands and products they are accustomed to buying, but reduce the frequency of their purchases and/or carefully weigh the value of products against prices. Moreover, as a new elite consumption pattern emerges in which buyers express an interest in participating in societal issues or causes, those that prefer “green luxury” - environment-friendly production and products is growing in number. Keyword 4 self-Comforting Consumption The upper-middle class is influenced by the economic downturn and reduces its spending, carefully considering purchases to avoid overspending. They tend to seek emotional compensation by buying a totally different item rather than a lower-brand version of past purchases. There is also a trend of “accessorization” in which people purchase low-priced entry products in the same brand. Keyword 1 “discrete” Consumption Among absolute consumers, there is an increasing trend to buy exclusive, ultra-expensive brands and products that are not overly exposed and are way beyond the spending power of most other people. In addition, products and services, wherein artisans make customized products and engrave customers’ names, their own names and the date of production, are becoming increasingly popular. As more “mania” consumers seek to buy products that have investment value or are limited
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