The Is The Global Economy Seems Are Fluctuation Or Even Is Experiencing A Noticeable Recession?

This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.

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.

According to Luxury Activist (2016), luxury goods purchase in physical stores has been growing by 3% since 2013, online sales have a solid 20% growth reaching 6.7 billion pounds. Indeed, luxury sales online have reached 12.5 billion pounds in 2014, doubled it from the previous year. McKinsey forecasts all luxury brands would embrace the online market by 2025 (75% was digitally influenced until 2014), the online luxury sales may go up to 62.5 billion pounds (Remy, Catena and Durand-Servoingt, 2015). The online share of total online luxury sales was expected to double from 6% (in 2015) to 12% by

An increasing economic interdependence of national economies across the world experiences a rapid cross-border movement of goods, service, technology and capital. Luxury goods industry, serve as one of the most competitive industry, emerging and developing rapidly all the time. To a great extent, globalization promotes the development of luxury goods industry significantly in spite of the big shock hit by several times of economic crisis.

Hermes, Chanel, Gucci, LV, Prada, Armani, and Ralph Lauren, when most people hear those names, they may automatically connect them with luxury, expensive, rich, fancy, and exclusive. The marketing on those luxury brands did an excellent job implanting their names and logos into people’s lives. Even though the world is still recovering from the economic crisis in 2008, the global industry for luxury products is constantly growing. A report from Arpizio (2014) on luxury good s shows that in years 2014, the overall global luxury market exceeded one trillion, showing healthy growth of 7% over all. Definition from the business dictionary (2015) explains luxury goods as products which are not necessary but which tend to make life more pleasant for the consumers. Luxury goods are not ordinary goods like water, food, clothes and other

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

In addition, China 's young rich and the rich second generation are the main promoters of younger luxury goods consumption. China Finance has reported that, the US and European luxury consumption are concentrated in over 40 years old people. However, young Chinese luxury consumer groups are rapidly growing up (Rebaca, 2013). Furthermore, Wu Jin has said that (2013), the youngest of the world 's luxury consumers in China, and they are spending their parents money to lives luxury. Many Chinese parents think that since they were very poor in their childhood, then they want their children have a better quality of life. Young rich luxury

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

Risk is a core reason why other luxury goods companies, with an eye on a Hong Kong listing, have hesitated. Prada was bold in its listing strategy, and that has to be one of the biggest lessons. It is one thing to identify emerging Asia – and China in particular – as the sweet spot of luxury goods opportunity, it is another to act on it

With concern to 26 to 45 years old consumers, we believe that a personal shopper service and made ​​to order service might be useful solutions in order to have their loyalty giving them specific services that only luxury brands do. In fact, that way they can get the most out of their luxury buying experience. To finish, we also suggest the creation of events during which the can purchase new collections in advance, generally the day before the collections are officially out in stores.

We define the luxury outbound market as the population of Chinese citizens who owns 10 millions RMB (approx. 1.5 million U.S Dollar) total assets that includes real estate, stock, investment and art collection. In 2011, the 10.3 GDP growth rate of China helped to rise the value of real estate heavily which resulted in 1.02 million of multimillionaires. Besides, there are 60,000 billionaires and 4000 multibillionaires. And the population of Chinese millionaires is expected to grow steadily by a rate between 7.3 and 9.7%. However, it should also be noticeable that only 1 of every 1400 Chinese is qualified to be named by the multimillionaire which is obliviously very rare indeed.

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.

Gucci, Hermes and Louis Vuitton, all of these brands had been found more than 150 years ago. With the high amount of profit, as well as the sales growing 6% every year could make luxury goods industry one of the highest profitable market in the world. The industry has seven main product categories which are; leather goods, footwear, high-end apparel, silks, watches, jewelry and perfume. The target group of this industry is women in the upper income brackets between the ages of 30 and 50. However, in Asia, most customers are women between ages 21-25. In the past, most designer tried to focus on timeless designs that allowed them to

1) Haute Couture – highest end, most exclusive, custom for wealthiest (Prada, Burberry, Hermes, Gucci, Polo Ralph Lauren, Calvin Klein, and Louis