Reasons For Buying Luxury Goods

In our world of instant gratification, people got to save money any way they can. People that shop online need to wait 48 hours before making an impulsive purchase. They are spending too much money on clothes, shoes, and accessories. One can start by cleaning out closets and sell the items that not being worn. In 7 Things Young People Are Spending More Money On These Days, Sam Becker states,This has led many to think that they are a bunch of entitled brats who refuse to grow up. But we have to take into account that millennials are saddled with more debt than any other previous generation, have grown up in a post-9/11 world of perpetual war, and entered the workforce during one of the worst economic stretches in American history. It hasn’t been all beach trips and Mike’s Hard Lemonades, though things are getting better (Becker, sec. 3). He says, The millennials

From consumer’s perspective, the motivation of their purchasing high-end products is complicated. According to the report of Mintel (Academic.mintel.com, 2013), which showed that the reason why a large number of customs have purchased luxury merchandise in UK. There were 44 percent of female interviewees and 48 percent of male interviewees bought high-end goods due to the good quality. In addition, 31 percent of men and 18 percent of women consider the sophisticated technique

The consumption of luxury goods in China is mounting sharply. Not only those born to elite families, but also many common people are greedy for luxury brands (China, a Booming

in 2011, and their spending jumped by 13 percent. Compare this to single women, whose spending grew less than 2 percent, and the average Japanese consumer, whose spending dropped.5 Young men, it seems, saw the March 11 disaster as a good reason to live for the moment, and Japan’s luxury goods market appears to be a beneficiary. Finally, when we look at segmentation by income, Japanese who spend more than a million yen (about $12,000) a year on luxury goods are more than three times as likely to say they are switching to high-end brands than to low-end brands (Exhibit 3). Those who spend less than half as much are reporting the opposite.

Sociocultural: In the recent years, the desire to appear wealthy has attributed to the increased popularity in luxury products. Also, the desire for luxury goods was promoted by effective advertising and TV programming that promoted conspicuous consumption to middle-income consumers. Middle-income consumers also tend to “reward” themselves with luxury items.

Because, at the end of the day “almost all of us place at least some importance on possession, money, and image” (Kasser). And when did society have a shift from the American dream of being able to own a house in the suburbs and a car that can move you from point A to point B, to having a big house with a pool and movie room, with the newest luxury car? As Ellen Goodman put it, “Normal is getting dressed in clothes that you buy for work and driving through traffic in a car that you are still paying for, in order to get to the job you need to pay for the clothes and the car, and the house you leave vacant all day so you can afford to live in it.” We could also see this shift in the Pursuit of Happiness; to our founding fathers this pursuit meant, having the ability to contribute to society rather than pursuits of self-gratification. Now it seems that all we care about is self-happiness, and with this buying items to make us

In this chapter, one will learn that affluent parents and grandparents, are not as frugal when it comes to buying gifts for their children or grandchildren. As this chapter includes a lot of graphs, it includes an interesting static. From 1996-2005, they learned that parents and or grandparents will give adult children over $1 trillion dollars. “Gifts” do not always have to be in money form, they can be land, homes, cars, etc. One will also learn that many people that have healthcare insurance, most of the time does not cover dental and healthcare visits fully. Many will also learn that, affluent people enjoy vacations. It was shown in this chapter, that more than 55% spend over 5,000 dollars.

Americans live in an era of out of control spending that is driven by materialism. Children at a young age become well acquainted with the idea that owning the newest and best puts a greater amount of value into one’s life. Unfortunately, for many, this negatively translates into adulthood. Materialism is the root of millions of American citizen’s insurmountable amounts of debt. People have the desire to appear to their family and friends as though they are living lifestyles of luxury, when in reality, they are simply digging themselves a hole of debt they will never escape. But not only is trying to keep up a wealthy persona costly, it also entails a vicious, draining cycle that constantly leaves the consumer

Hunger for luxury items and people’s strife for the brands and items they associate with being beyond reach is paramount for this system. It is this drive for items one can’t have that the author feels is one of the benefits of consumerism. He declares, “…the aspiration of the poor to

caring of the price is evident that money can bring happiness to one’s life. Living life without limitations enhances a person to live with experience and adventure . Not having to fret over debts or not being able to travel are some peculiar positive outcomes of having money. Money aids in relieving stress created by pondering on being able to afford desires. Back then, living life subtly was the normality, but now in the twentieth century, living life lavishly is seen all around. To be able to partake in such lifestyle one needs a good amount of wealth to cover necessities as well as extravagant desires. Fashion icon Kendall Jenner, showcases what living life with abundance of money can do. The lavish life is reflected to a life of happiness.

This behavior brings competitive advantages to the European luxury brands. Moreover, customers in different countries have different purchase behaviors. For instance, some countries’ customers are willing to move away from common recognized brand, because they want to purchase more exclusive products. Furthermore, because of the increasing speed of globalization, people are more likely willing to travel between different countries. These travelers will buy luxury good during their trips. In fact, Chinese tourists contributed over one third of sales in Europe. The luxury goods industry should notice to adjust the actual demand between local people and tourists in Europe

The world is the influenced by what they see and want to be there, where the low class wants to be like the middle class and the middle class trying to look like the upper class. Today celebrities and people in upper class have influenced our sense of importance and needs, when it comes to the aspect of picking commodities. Thus, many have resulted to high and unnecessary expending in order to imitate a particular social icon. It can be ascertained that almost all average American adult being in debt might be as a result of overspending their need limit. This excessive and unnecessary spending as a result to boost our economic status has led to some drastic tragic events. A Chinese man, Tao Hsiao, 38, on the 9th of December 2013, jumped to his death in a shopping mall at China because the girlfriend would not stop shopping after several hours of shopping ( The Washington Times). “He told her she already had enough shoes, more shoes that she

The overall sales of luxury goods in the year 2009 is expected to be more than US$150 billion and Asia contributes 10% to it. The concept of luxury is now not confined to only to Europe and US, the Asian subcontinent contributes majorly to it, with India and China as the newly emerging markets. Professor James Twitchell (2002) comments on the democratization of luxury and the changing consumer psychology These new customers for luxury are younger than clients of the old luxe used to be, they are far more numerous, they make their money far sooner, and they are far more flexible in financing and fickle in choice. They do not

The last problem we highlighted concerns how to increase the number of customers in the mainland China market . First, we believe that the most relevant issue is a survey amongst customers on the Shanghai Tang brand perception and the 5 luxury brands in their top-of-mind, in order to analyze the competitors that the company has to face in the future.

In terms of social culture, for one thing, the China consumers are attracted by middle- and high-end products and somehow more attracted by French luxury goods, and they believe that the higher the price, the better the quality (Yuval, Vinay and Cathy, 2011, para7) (Exhibit 1). For another thing, the traditional virtue of thrift is rooted in the mindset of the Chinese, with which some of the rich in China indicate that they would not spend a large sum of money to get a product.