Globalization And Globalization

Is the increasing globalization of business good or bad for the United States? If you are from a different country, what effect do you think globalization is having or will have on your country? Is globalization resulting in unequal gains for different countries?

In the luxury goods industry, the rapid development has brought the market more brands and the latest design products. Industry matures has caused the accelerated development of a wide range of luxury goods (Chiari, 2009). However, one thing was constant, no matter how much increased production costs, the large luxury brand of origin will not be transfer. Long cultural history is an integral part of the luxury brand, and the origin of products have also brought a certain cultural value for luxury goods (Heine, 2012).Especially for Asian consumers, it seems that in the far west, craft superb tailoring and rich cultural history of the western area are the pursue of Chinese consumers (Sombart, 2001).Louis Vuitton 's president has said that (2013), “when customers buy our products, they expect Western quality. The mystery of the origin of our brand is closely linked with our brand”. Although with the close of trade, many luxury goods in the production and sales process will cooperation with other country’s companies, the final product definitely launch in the country of origin. Gucci is a legendary brand in Florence (Italy), and it will also strictly control the production done in Tuscany (Italy), to ensure pure and high-quality products (Gucci, 2015). Therefore, a regional feature has brought an intangible value and more local cultural characteristics to the luxury goods.

At the apex of the market was haute couture with it very high-end “custom” product offering that catered to the extremely wealthy. Luxury goods manufacturers believed diffusion brand’s lower profit margins were offset by the opportunity for increased sales volume and the growing size of the accessible luxury market and protected margins on such products by sourcing production to low-wage countries. Eye-catching utilization of their products by prominent figures in society leads to increasing demands for luxury good items and it is a growing industry with the global luxury goods market growing 9% per year. These consumers buy their products for satisfaction and to boost their self-esteem rather than for ease or comfort. All these components blend in the context of a successful business of the luxury goods.

Globalization is taking place across the world where people can either become globalization or stay local in the state or country. People are very controversial about globalization helping local economies and local businesses. Some people believe globalization is helping local businesses into the markets and then there are some that believe that multinational corporations hurting the local small businesses. What is globalization? “the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets” (). Globalization has started long before we were born.

In nowadays, buying luxury brands is not only showing a sign of wealth, but also a kind of rewards for people’s hard working. Luxury products sell high market prices because of their designs, brand names, and the qualities. People want to buy luxury products because their quality is better than target brands. For example, the brand like Bottega Veneta is known for its traditional design of leather goods; their handbags are handmade in Italy. Comparing to Bottega Veneta to target brands, Bottega Veneta’s design will not easily out of style, but target brands will easily out of styles because their designs are relatively ordinary. However, in the recent year, some luxury brands’ reputation has gone done because those brands were shifting their factories to other countries and then shipping back to Italy just for the label. Technically, the phrase “Made in Italy” is not really manufacture in Italy anymore, sometimes this product 's qualities are not as good as before. There is a rising concern of whether these luxury goods really match with the expensive price tags.

According to a study conducted by Brain & Company, the number of luxury consumers has increased dramatically from 90 million to 330 million over the past 20 years(Arpizio, no date). Since Roman Times, people have been using luxury items and they have become more prestigious and valuable over time than they actually are due to their unique and different marketing and advertisements. The extraordinary marketing methods of selling luxury brands include making the products scarce, touching consumers’emotions, using different kinds of advertising medium, having celebrities endorse their products, employing famous designers, and etc. Although those are all unique advertising strategies of luxury brands which are different from regular brands, the

“Globality signifies a social condition characterized by tight global economic, political, cultural, and environmental interconnections and flows that make most of the currently existing borders and boundaries irrelevant” (Steger 2017: 10). This means that everywhere is connected. There are millions of trade routes that connect the different countries with each other. When trading things, they are not just trading commodities, they trade their values, languages, and non- materialistic items. “Globalization is a spiritual concept signifying a set of social processes that transform our present social condition of conventional nationality into one of globality” (Steger 2017: 12). Globalization makes the world connected. Without globalization,

Maintenance of the brand image is always the fore most important factor for the luxury brands in order to sustain in the market. is very critical. Therefore, of all the criteria mentioned above, we have determined the brand image is the most important criterion on which we will base our recommendation.

In the last couple of years, luxury brand management has generated much interest and discussions in both academic and business circles. Among business leaders, the debates have been related to the associated challenges that have emerged as a result of the evolution of luxury since it became a consolidated economic sector. Many

LV should focus more on the Europe and US markets, and the absolute and aspirational customer segments. According to date of world luxury goods market study, both Europe and Americas markets together shared over 65% of the total market in 2011, while they were also predicted to have over 5% growth in next year. What is more, data of competitor sales analysis also show that most of them had high revenue in those two markets. As it is well known, Europe and Americas are the traditional market for the luxury industry and almost have huge customer base who are main the absolute and aspirational customer segments. As to focus on them, LV needs to spent more money on built high as well as upper class fashion and offer more made-to-measure and high quality product and/or services. In the same, the degree of rivalry was high in this two market where all the luxury companies targeted and

Apart from the social parameter to determine consumer behavior toward luxury, other metrics influence the value of the brands and consumer perception. It entails an exploration of the luxury value conceptual model, which incorporates financial, societal, personal, and interpersonal factors influencing the luxury brand and value on customers. Consumers must believe the credibility of the brand reflects luxury, because it is made up of characterization of prestigious brand-name products, especially the psychological benefit of high prices during the recession. In this highly competitive market environment, is important for a company to manage the client or brand, assisting clients in their ability to distinguish between different brands, makes their brand valuation of competitors (Kim, Johnson, 2015). Academic views on luxury brand frequently identify what consumers typically can offer luxury list they course considered to be luxury brands such as Louis Vuitton, Ferrari, Chanel, etc. However, some consumers may be difficult to determine

In the high end retail market, Gucci (1921), Louis Vuitton (1854) & Vertu (2000) are three successful so-called luxury brands. However, creating luxury brands is a difficult marketing exercise. Marketers are moving from the traditional marketing mix approach towards greater use of experiential marketing to create an emotional attachment between the brand and the customer. It is necessary for a brand to convey a personality that the customer can relate or aspire to.

Luxury brands can no longer rely on traditional markets in order to grow. European brands have expanded to Asia and have relayed on their heritage. But the luxury brand should not only rely on its history and age to be sure to succeed. This certainly provides a brand with more stories to tell but it should be clear that this is only one of the resources of a brand. A brand needs to really consider the environment and time they operate in and adapt the brand. This is definitely not easy because if the retell stories about the past they might show more nostalgia than relevance. On the other hand if they try to adapt to trends in the society too much they might lose their authenticity in the long run (page 200-201) The key to success for a brand is demonstrated by this sentence ”It is the brand’s ability to understand and respond to the deeper currents rather than stylistic ploys

Luxury is accessible to all but not all can access luxury. With it’s limited production, refinement and its little amount of buyers. It is one of the driving forces in society to date. It is in the upper class consumer’s culture to buy Moschino; it is a premium brand in terms of quality and price so we could say that it is ranked among the luxury brands we know of. Which means not any person could afford Moschino. Those people for whom luxury is a part of their upbringing can be easily persuaded to buy Moschino. If the consumer doesn’t find the brand attractive and to whom luxury is not included in their every day life they could be of lesser importance to the brand because they are not included in the target segment but could still be potential clients for the less elite products. It is due to globalization that everything became more accessible to the public and so did the luxury business which; opened up a new

Luxury product has become more importance roll in social life especially in Asia pacific, the sale has increased from 12% in 2007 to 29% in 2015 in expected, due to the luxury brand is a symbol to shows a social status (Tovikkai and Jirawattannukool 2010; Zhang and Kim, 2013), affected to many western luxury brands desire come to investigate or launch a new store in Asia to serve the demand (Ferdinandi 2014)