Despite the Recession by Sanjana Chauhan Feb. Recently the US retail market was hit by recession, yet some niche luxury brands managed to thrive. While the tight wallets of the majority of the population are generally cause for concern in a bad economy, the spending of the wealthy has continued to contribute to overall economic recovery. Luxury clients have decided to buy again, regularly, as brands continue to surprise with innovative marketing ideas.
Introduction The aim of this research proposal is to better understand the impact that a financial recession period has on the buying power of the customers.
In order to narrow the study that could involve many different areas, the emphasis here will be on understanding how the consumer behaviour for the luxury market is affected by a recession.
It is important to understand how the environment influences these consumers, like their culture and spending capacity Perner Through the proposed research the effect on buying luxury goods propensity will be investigated and how the top clients of luxury brands reacts when a difficult economic period is being broadly experienced in the whole World.
The conclusion will be a result of the research methods, suggested applied and analysed, furthermore reviewing the updated published articles for this current theme. Background The concept of luxury has been studied and discussed as a contemporary subject in the communication and consumption field, as argued by Chevalier et al.
To explain which are the luxury brands, here are some examples for this peculiar market: According to Chevalier et al, the biggest differences between the luxury companies and the others in the market are divided in three groups: In the luxury market normally the companies are small comparing to the annual sales of others.
However the luxury brands are well respected and recognised. This is also known as brand awareness and consumers are interested in the luxury companies, they want to know what these companies are doing and follow their history. Each luxury company can work it sales figures to be composed of vary different elements.
While one company can count only the stores sales figures, the other can reflect in its sales figures from the retail stores sales, outlets, export sales and revenue from licensing.
In the car industry for example, the objective is to launch a new car as soon as possible, aiming to obtain the return of the investments after a few months past the launch, or as quick as possible.
On the other hand, in the luxury companies launches normally are more time and investments consuming. To launch a luxury perfume for instance it could take more than two years. Luxury goods are exclusive as well as its manufacturing. Chevalier et at discusses that in the luxury market the products are not consumed.
Actually there are no products, only special articles that clients want to purchase and keep. These clients are misnamed consumers, however they will not consume the product and then go back to the store to buy some more.
In the luxury market every acquisition of a good is involved with emotion and social satisfaction. Chevalier et at argues that the luxury clients can be the very wealthy people or everyone who can afford to buy one of these top products.
Excluding the millionaires, the categories can be from top-down:A Study on Why Luxury Goods Sell and their Effects on the Economy Seung Yoon Rhee+ This trickled down into growth for the suppliers of these luxury brands as well, because the despite their considerably higher prices and will analyse the effects of luxury goods in specific product categories as well as the economy overall.
The aim of this research proposal is to better understand the impact that a financial recession period has on the buying power of the customers.
In order to narrow the study that could involve many different areas, the emphasis here will be on understanding how the consumer behaviour for the luxury market is affected by a recession. With luxury brands, relevance is an extremely important issue and therefore, one must move with caution.
However, recession is the best time to build relevance and such relevance will stick for long-term. Luxury brands during times of recession A question of survival Universally, luxury items are considered to be items of great prestigious value, and their possession has satisfied people worldwide - Luxury Brands During Times of Recession introduction.
In the last three decades particularly, consumers have enjoyed a higher level of disposable income than ever before. Impact Of Recession On Luxury Brands In India Introduction: Luxury has existed since times immemorial.
Earlier it was merely with merchandises and services, nevertheless over the period of clip as the markets have evolved Luxury Trade names have come into being.
Recession, what recession? While high street retailers are going to the wall, the world's most luxurious brands are reporting booming sales of £2, handbags and £ high heel sandals.