Luxury Market in Beauty Industry

Luxury Market in Beauty Industry

  • Submitted By: philiz31
  • Date Submitted: 04/11/2013 8:11 AM
  • Category: Business
  • Words: 2024
  • Page: 9
  • Views: 169

In view of the dynamic growth in the luxury market and the availability of luxury goods to a wider range of consumers than ever before, the luxury market has transformed from its traditional conspicuous consumption model to a new experiential luxury sensibility marked by a change in the way consumers define luxury. As suggested François-Henri Pinault (cited in Doran 2012), luxury is now for both the masses and the classes, which exclusivity is no longer a criterion for luxury. The boundary between the affluent and the poor has become increasingly blurred, as more and more people are able to afford luxury products from the big name. As a result, Luxury products are no longer the opposite of poverty, but the opposite of vulgarity as described by Kluz and Han (2012). Consequently, one does not need to be rich to enjoy luxury as the lifestyle and attitudes of today’s society will continue to shape the dynamics of the global luxury goods market in the future. However, the new phenomena in luxury branding such as ‘new luxury’ and luxury brand’s extension may undermine the value of brand and risk of diluting status consumption culture.

The luxury market has been booming since the early 1990s. According to Guardian (2011), global luxury goods sales has reached a record of €185bn in 2011 with an 8% growth forecast for luxury sales. Emerging markets such as China is expected to make up 46 percent of revenue of global luxury market by 2025 (Kluz and Han 2012). This reflects a shift in the luxury goods consumption and shopping culture, where consumers are enticed by the prestige value of luxury brand and willing to invest in products that they believe will emulate the lifestyle of the richest. Emerging economies such as China and Brazil have brought millions into the luxury goods market that is fuelled by strong purchasing power.

As we can see, the progressive developments of emerging economies as well as economic factors worldwide have contributed to a more...

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