Luxury Industry in France

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Luxury industry in France Luxury is artificial definition and cannot be easily transferred into real life. It is a notion of anything that is useless and superfluous in real life. However, it can be often associated with beauty (art, entertainment, design, décor or trend) and remains one of the driving forces behind society’s spending. It is true that luxury speaks and renown’s itself by big spending and indeed, outlandish expenditure is often associated with it. The world luxury market is worth more than $130 billions and France is the country which owns the largest number of companies in the luxury and historically always been trend setter in the luxury market. Some of the world’s best symbol of lavish lifestyle is essentially…show more content…
Moreover they work closely with design schools in Paris organizing competition between design schools to choose the elite, the best students of this competitive examination. Every structure, knowledge and human resources is centred on Paris. All of these condition factors are concentrated in only one place in order to build every advantage and to get better and better. Capital resources are due to companies’ investments working in luxury sector and investing in bourse. MSCI World Textiles & Apparels & Luxury Goods index owns 1,500 securities on 23 international markets (Lefigaro website 2007). It is a reference to investment funds return. Then their strategic setting-up in Paris attracts numerous foreign investors. 2 Demand conditions The second determinant of the diamond model mentions the demand more precisely the home demand, the size and the growth. France is formed by more than 60,000,000 citizens and it is one of the richest countries of the world. Concerning the home demand, Luxury goods such as perfumes and cosmetics, the sales keep their growth until 1989. After this period, the consumption has decreased because the demand has become more sophisticated and restrained. The luxury industry does not work like the other industries. In fact, in luxury buyer needs do not exist. About the fashion design the buyers are interested in the designers’ creativity and they do not worry about their practical
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