The luxury goods market in Australia has experienced steady growth over the last 5 years. The market is being underpinned by rising discretionary incomes within Australia, combined with the increased spending of Asian tourists – the current love affair with luxury does not seem to be abating anytime soon.
So what exactly does luxury mean? Luxury is defined by the Oxford dictionary as ‘a state of great comfort or elegance, especially when involving a great expense’.
Considering the hefty price tags associated with luxury goods, how do companies market their products to the masses? How do they get us to part with our hard-earned money for items that are not an absolute necessity?
Luxury brands are in the business of selling dreams. They need to convince us to not adhere to the conventional wisdom of economical decision-making. Research has shown that we feel a sense of status, wealth and exclusivity when we buy these luxury brands. Consumers are pulled towards the brand, with the promise of belonging to an exclusive community. We have an emotional response to the product and experience heightened feelings of accomplishment, a sense of pride in the consumption of these goods and services.
Our possessions assist in creating and managing outward impressions of who we are, and more than ever before, consumers today are attempting to transform the conditions of their lives by transforming their consumption behaviour. Over a century ago, Thorstein Veblen coined the phrase ‘conspicuous consumption’.
Are the luxury products we purchase just a means of signalling our wealth to others, nothing more than a public declaration of our status and lifestyle?
As this article from the Guardian Australia notes, in one way or another, perhaps we are all (consciously or not) signalling who we are or who we wish to be, through our conspicuous consumption of goods and services.
As Tim Johnson points out in his Ted Talk – An Economic Reality Check, today’s consumption of luxury goods is ‘a story about us, people, being persuaded to spend money we don’t have, on things we don’t need, to create impressions that won’t last, on people we don’t care about’
Considering this, is it fairer to wonder about the wider context in which consumers ‘showing off’ takes place? Should we not blame the society in which we live for setting up a situation where the purchase of absurdly overpriced brands feels psychologically necessary and rewarding?
Is the luxury brand industry merely fuelled by people who feel that their chances of being treated with respect will increase if they take the extra precaution of acquiring a Ferrari, a Chanel bag, an Omega watch…..
Is the consumer drive to purchase luxury items, at its core, simply based on conspicuous consumption or are there additional factors Marketers can use to motivate people towards higher end products?
Marketing Management Blog 
I think consumer behavior depends variably on the way salespersons will advertise products. For instance, a phone seller who is trying to charm a particular population for the features of the phone will highlight its exclusive features; on the other hand someone who is just trying to charm people by saying that this would uplift their status will have an entirely different approach.
Traditional or societal values play a crucial role too in determining the success of a product in the respective market. If great emphasis is put on activity and materialism, then people who say that their products stand for those values are more prone to see success. Societal values are not less significant. If a merchant suggests his product will make the buyer look macho and handsome in a spot here these values are regarded as high, consumer will respond most likely.
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Is consumer behaviour really this complicated, do marketers actually take into consideration the consumers values and market the product to suit. I think a lot of advertising campaigns are generic and they tend to be happy if the product sells and will use any statistics to justify the success. Take Coles advertisements for example, the adds don’t make sense, make you change the channel and cringe every time, and have probably done more damage to the brand name than good.
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I think marketing of high end products is definitely a considered process. Although as you say many products, such as consumer staples at Coles, are massed marketed to a generic audience. When products start reaching certain price tags, I believe they are definitely pushed at a targeted audience. High end products by their nature are not consumer staples, the seller needs to establish a desire or convince a certain market that there is a need for them to consume these products. For retailers to convince consumers to purchase more expensive products they undertake extensive marketing research followed by campaigns to convince that group that they there is a benefit to them in spending more money. This may take many forms such as;
• Trying to establish a mindset that a product is of superior quality and, therefore, reliability, to cheaper competitors. For Examples Cars and Furniture. As discussed in http://www.theguardian.com/media-network/2014/nov/25/luxury-goods-marketing-ferrari-le-labo
• That a product will give them an advantage socially over peers who have bought alternate, more cost effective products. For Example Clothes and Smart Phones. The growing emergence of two tier mobile phone products is discussed here http://www.wsj.com/articles/in-smartphone-market-its-luxury-or-rock-bottom-1422842032
This article discusses how Apple seeks to market through exclusivity rather than price and availability. It sells the since of superiority through luxury branding.
• Convincing a market that their product will give them a greater level of comfort or indulgence. For Example 5 star hotels and restaurants. Such interest is increasing with richer developing economies http://www.transparencymarketresearch.com/luxury-hotels-market.html
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Interesting response, given we do not switch the TV on to think about going shopping, I assume it falls under ‘perceptional fluency’ chapter 2 pg 18 MM Iacobucci. I’d also be interested in how budgets for marketing are established, how much product do we have to sell to have a big enough marketing budget, I guess is one way of seeing it.
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Online marketing is addressing this – the ability to easily segment marketing activity based on consumers preferences, address, past buying behaviour – this is really changing the face of generic marketing strategies.
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I think consumer behavior depends variably on the way salespersons will advertise products. For instance, a phone seller who is trying to charm a particular population for the features of the phone will highlight its exclusive features; on the other hand someone who is just trying to charm people by saying that this would uplift their status will have an entirely different approach.
Traditional or societal values play a crucial role too in determining the success of a product in the respective market. If great emphasis is put on activity and materialism, then people who say that their products stand for those values are more prone to see success. Societal values are not less significant. If a merchant suggests his product will make the buyer look macho and handsome in a spot here these values are regarded as high, consumer will respond most likely.
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I agree.
I think that we purchase goods because it triggers something in us, individually. The better the seller understands, by listening, reading the situation/current climate and reacting the more sales will follow.
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I think consumer behaviour evolves overtime and depending on the needs of the customer at the time. For example have a read of Heart Foundation Findings, (http://www.heartfoundation.org.au/information-for-professionals/publichealthimpact/Pages/consumer-behaviour-change.aspxon ) it is interesting to see how the customers spending and selection habits over the last 20 years have changed. “Over the past two decades since Tick’s inception, consumer behaviours have evolved. Australian Bureau of Statistics (ABS) reveal that Australian females are spending more time on employment related activities and less on food and drink preparation/ clean up.” (Heart Foundation).
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Following on from the comments of Sprat 214501313 I believe luxury goods can be split into two categories; those items in which the price tag reflects the quality of workmanship, durability and performance and those which are purely symbolic of status and wealth. Marketing managers would be well aware which group the commodity they are selling falls into and as such will ensure that their campaigns tap highlight these attributes.
I believe the major issue we have as a society in regards to spending on items that are clearly not a necessity is more so to do with how and when we acquire such goods. Just like many of were taught growing up, if you want something bad enough you should work hard and save your money until you can afford to buy it, rather than just stick your hand out and get Mum and Dad to foot the bill. This lesson seems to have fallen by the wayside with the proliferation of credit cards, meaning that we can have what we want, when we want it and we don’t even have to have the money to pay for it.
A recent article in The Age published on July 24th estimated that the average Australian owed $3195 on credit cards and $18000 in personal loans showing that culturally we have grown accustomed to living well above our means. It is here where I feel the marketing has an unhealthy influence. Campaigns promoting “buy now, pay later” deals or ads exacerbating consumers fear of missing out or being behind will ensure that many Australians will to tumble around in a cycle of debt and soaring interest repayments.
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I find this interesting, the craftsmanship and exclusivity of a Diamond engagement ring for example is becoming entirely twisted and the marketing of these products is becoming or has to become more sophisticated, in order to drive customer behavior and create an expected reaction.
As we are aware, the Diamond industry is strongly regulated by large corporations, as any other industry. Releasing or producing only a certain amount of product per year.
The craftsmanship of DeBeers is outsourced to overseas manufactures utilizing the newest laser and Computer Aided Design technology, inline with Nike and other brands.
My question to the blog would be, as consumers are we in a transitional phase where we know that we are driven by marketing, potentially manipulated, yet we still behave and hang onto the traditional thought that DeBeers and the jeweller handcraft my personal engagement ring?
Thoughts are appreciated
Jens
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I agree with you. We have moved towards a society where everything that we do has to have an instant result. Everything must be bigger, faster, better and the bigger, faster and better than our friends and peers the better. I believe that we have also shifted to a world where instant gratification is the norm and almost a necessity. Whether it’s being able to buy whatever it is we want whenever we want to, despite our finances, or receiving feedback about our purchases from or friends and peers via social media, everything has to happen now! Do marketers simply tap into these desires or are they implicit in the ‘grooming’ of consumers to develop these traits, including accepting the levels of debt that you mention, as the norm?
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My apologies for the above, I bumped the button and only the blog owner can delete comments. So if you wouldn’t mind deleting my chicken scratch full of spelling mistakes and poor grammar for me that would be much appreciated
Firstly I enjoyed the blog. I feel the points raised about what drives people to make luxury purchases are relevant and marketers do indeed direct their marketing style and channel accordingly. Consumer behaviour in my opinion is an almost infinite study as there are millions of different needs and wants that motivate purchasers. As discussed in the text even the luxury goods market has different types of buyers and has different products and marketing to meet their needs. The example of “old money vs. Nouveau Riche” having different wants or needs. “Old money” tends to want exclusivity, where as “Nouveau Riche” tends to want large labels as a way of showing the world “I made it”.
I work in a steel roofing industry where there are multiple suppliers manufacturing the exact same roofing profiles out of the exact same materials. The marketing dollar in this industry is mostly face to face via sales reps, account managers etc. Different suppliers have assumed different roles in the market in order to have a point of difference and attract a certain type of consumer. Some suppliers offer cheaper prices and a low level of service to attract the price driven consumer, whilst other have gone the opposite and are slightly more expensive but offer fast turn around and higher service levels to focus on the consumers that place value on those aspects. The retail or DIY market has been identified by some players and these suppliers have focussed the marketing dollar more around retail shop fronts and television commercials to attract home renovators over the commercial or trade market.
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A nicely written blog relating to an aspect of marketing that relates, in my opinion, to Maslow’s Hierarchy of Needs. A particularly poignant example of this in action is in the post-apocalyptic period following the Global Financial Crisis when global luxury brands suffered their largest single year slump in history.
According to the Maslow’s pyramid, a person’s motivation is driven by a desire to satisfy needs that are ranked according to their importance in daily life. As each level of needs is satisfied, the person moves onto the next “level” on the pyramid – each level describing higher levels of abstraction. So, those needs that facilitate basic survival (i.e. sleep, water, food) need to be satisfied first – once achieved, the next level of safety and security is adopted – all the way to the “self-actualisation” stage.
Branding does not work that strongly at the lower levels. If you are stranded in the desert, I feel certain that you would accept any brand of water – Perrier, Mount Franklin, Woolworths home brand – or even (heaven forbid) Sydney tap water. The need to satisfy thirst overwhelms. However, back in the comforts of city life, marketers would expect that the same person would be a little more discerning – thereby occupying a position closer to the top of the pyramid. (The same argument can apply to organic fruit versus “normal” fruit). However, move closer to the top, and brand is everything.
So, post GFC, as incomes dwindled, share portfolios value halved and economic uncertainty prevailed, discretionary spending tumbled. Much of this was felt by the higher income section of society. (For once, the poor were at an advantage to the rich – due to their lesser propensity to own vast personal share portfolios and tracts of priceless real estate.) But, those who sat at the pinnacle of Maslow’s pyramid still needed daily transportation, still needed to eat and they still needed to wear pants – but were more likely to take the subway (rather than the Roll’s), more likely to make a sandwich at home rather than fine-dining and more likely to spend $50 on a pair of no-name or second hand jeans rather than $500 for some G-Star. In fact, the GFC was the best thing that happened to second hand shops in New York (and Qld!) in years. If effect, the top dwellers of the pyramid now quietly and discreetly slid down a few rungs of the pyramid – taking with them their propensity for elite branding.
Moving forward to 2010 and beyond, as the financial scars healed, the big brands are now reporting a recovery in sales. Crisis-weary consumers are now slowly opening up their wallets again for some self-actualising spending.
Selected sources:
http://www.news.com.au/finance/champagne-popping-again-in-luxury-business/story-e6frfm1i-1225899872464
http://www.smh.com.au/national/education/how-did-thrift-become-so-fashionable-20121112-29856.html
http://www.couriermail.com.au/news/queensland/cheap-goods-come-back-to-bite-queenslands-frugal-shoppers/story-fnn8dlfs-1227418076782
Course text: Iacobucci – MM4 – page 20
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Maslow’s Hierarchy of needs is a great base for understanding what motivates people. The limitation of Maslow’s theory initially, was that Maslow suggested that you must achieve one level before you proceeded to the next. However following further research by him and other academics, he later conceded that a person could be seeking to fulfil multiple needs at one time and one could skip levels and drop levels also. With consumer behaviour in mind, we as marketers need to be aware that just because a person has only met their safety needs this does not mean they will not make purchases to satisfy esteem needs and so on. Credit card debt, store credit, and more businesses offering interest free terms highlights and facilitates consumers to jump the levels and make purchases outside their current means to satisfy higher needs.
The other consideration we need to make as marketers when using Maslow’s theory is the requirement of what fulfils a certain need is determined by the individual. My idea of self-actualisation may be successful career as a CMO, wife, 2.5 kids, European holiday every year, a Range Rover for the family and a Ferrari for fun. However in comparison, Joe Blogs idea of self-actualisation may be stable full time employment with enough money for a clean flano, beer, fishing gear, and a small tinnie to go fishing on weekends. We are both equally motivated to meet these needs and will make decisions and purchases in order to fulfil them. However different they are, we both need to be marketed to accordingly.
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I really enjoyed this blog; very provoking. OK, in light of Asia, I have had the opportunity to visit Nanjing China a couple of times over the last year with employment. It is very evident that China in particular is prospering. Once considered a low cost option for manufacturing, thus exciting the interest of the high cost manufactures in the Western world, China has enjoyed the investment of many nations. With tight stringent policies on the flow of income allowed to leave its boarders and the encouragement of joint ventures between external and internal companies, China in particular is thriving. Extensive building and upgrading of infrastructure is occurring at a quick rate.
The above in turn feeding the 300% increase in wages over the last 9 years, with a relatively slow CPI change, gives the Chinese disposable income they were unaccustomed too. With the exposure to many nations, the Chinese have the ability to travel, explore and also demonstrate their prosperity, as pointed out in the original blog; perhaps a human trait. This giving Australian marketers the opportunities to develop a marketing plan around the 5C’s, STP and 4P’s. The above, and the article link below, giving some basic rational around the rise of the increase in spending of Asian tourists.
Size counts: China and India flex their consumer muscle
http://www.asianconversations.com/AsianConsumer.php
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Can I say that people buy stuffs just to fulfilled there need ? it doesn’t matter that product is a cheap one or expensive, if people be able to possess it, eventually they will get them.
Marketers, they play with consumer behavior, their job is too create that unnecessary need (some goods of stuffs that serve the same benefit, but with excessive price), persuade them to see the benefits of possess the products. Unnecessary need such as a luxury cars and moderate cars, these two types of car they both can serve it core purpose, which transport us from one destination to another destination.
However, with or without Marketer, when people have enough money to live on to support their basic need, most of them will desire for something that can make their live better ( both quality of live and appearance ), and this is where markers come in. Marketers fulfilled this position in our societies, people do need basic stuffs like Shelter, foods, But when people can fulfilled these thing, they will want something that fulfilled their higher need.
Perhaps, it doesn’t matter whether, there are marketers to create that unnecessary need or not, when their (consumers) basic need has been fulfilled, they will search for something that make their life (feel) better ! And when the time come, it will be some people (company) that create things to fulfilled the need (if it make them unique, it come with a high price tag)
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Reblogged this on jkirsc and commented:
I find this interesting, the craftsmanship and exclusivity of a Diamond engagement ring for example is becoming entirely twisted and the marketing of these products is becoming or has to become more sophisticated, in order to drive customer behavior and create an expected reaction.
As we are aware, the Diamond industry is strongly regulated by large corporations, as any other industry. Releasing or producing only a certain amount of product per year.
The craftsmanship of DeBeers is outsourced to overseas manufactures utilizing the newest laser and Computer Aided Design technology, inline with Nike and other brands.
My question to the blog would be, as consumers are we in a transitional phase where we know that we are driven by marketing, potentially manipulated, yet we still behave and hang onto the traditional thought that DeBeers and the jeweller handcraft my personal engagement ring?
Thoughts are appreciated
Jens
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As we know luxury is the opposite of poverty and is a non-essential entity. What successful luxury brands have succeeded today in is creating a top of the mind awareness of their product and perceived quality using various mediums across the globe .as we know the 7 major luxury sector operating in the market are fashion, auto, property, eyewear, jewellery, beverages, beauty and none of them fit in the bottom level of Maslow need theory. In today’s Globalised world changing consumer taste confers high social status and prestige value for luxury brands consumptions .luxury branding today is all about getting potential consumers to see the brand as the only solution to their desire which far surpasses the economic value of the product they purchase.
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In an effort to enrich my study of Marketing I have added the show ‘Mad Men’ to my extracurricular activities. I am finding it to be a great and entertaining way to look at some of the topics we are covering in the course.
In the first episode the marketing company is brought in to help Menken Department store. The ‘Mad Men’ solution is to provide coupons and sales to attract frugal housewives. The owner rejects this approach and choses to increase prices in order to make the store more exclusive and targeted to more wealthy consumers. Product quality and service is virtually the same yet people chose to pay extra in order to be associated with the luxury crowd. Shopping and purchasing from the store becomes a status symbol on its own; not too much different from shopping at Tiffiny’s or Sacks Fifth Ave. Though the episode is fiction and based in the early 60’s we can still see the same strategies being used today. There are times when spending extra clearly gets you better quality/service but its interesting to see how effective this approach can be to drive consumer demand and desires.
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I believe perception is key regarding all brands, not just the typical luxury brand. What I define as a luxury item is likely to differ from what you believe is a luxury item. Many different factors and personal characteristics can lead to this differentiation such as life stage, gender, socioeconomic status, geography etc.
I also think the price of the item can also define whether or not something is considered a luxury brand. There is a perception that people are impressed by what you are able to pay for. Having lived in the US for 2 years now, I have seen quite a difference in the perceptions of some brands between here and home in Australia. For example, Coach is typically considered a luxury brand, however here in the US, Coach isn’t viewed as overly inspirational and I believe this is due to the fact that their products are typically half the price if not less and sold in Macys in addition to their on separate stores. This also demonstrates that product placement can also have an impact on the perception of a brand as in Australia, Coach is often in the vicinity of other high-end luxury brands.
Similar to the previous posts anlysing Maslow’s Hierarchy, McClelland’s Needs Theory and the Need for Affiliation can be linked to consumer behaviour towards luxury brands. A high nAff relates to a person striving for acceptance and belonging. The majority of the population aspire to the image that this particular good they will give them, the comments and awe they will receive from ownership which all relate back to social acceptance.
I believe the key really is about being able to satisfy the target customer’s needs and delivering what no one else can in order to drive the consumer behaviour you desire – purchase, hopefully continued, and positive word of mouth.
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I don’t think that society is to blame for a persons desire to surround themselves with luxury. We do not live in a utopia where everyone exists on a level playing field and shares their wealth evenly.
We as a species have always had the desire to have more and better items to make our lives easier, from have the bigger cave / shelter / house through to the fastest car / biggest diamond and whitest teeth.
There will always be the desire for luxury goods to fulfill our need for self-gratification and use it as a justification for our hard work (at least in our own minds).
Marketing just provides the medium for the producers of luxury goods to reach their intended customer base.
In the words of Gordon Gekko, “Greed is good”. (Wall Street, 1987, 20th Century Fox)
People will always have the need to portray themselves with a sense of power to the people around them. The surrounding oneself with luxury items is our way of demonstrating our position on the ladder of success.
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This was a great blog post – thanks!
What interests me are the consumers who don’t buy into the perception of wealth and status. There is no doubt that there are pressures within contemporary society to earn more, have more etc but there are vast numbers of people who don’t prescribe to this. Is it enough for marketers to base their decisions on the majority (a lot of people would say yes if it’s making their companies money!) and to market in this way? What about the untapped consumers who may have enough money to spend on the product, but who are looking for different qualities – ie environmental impact, reliability of product, aesthetic interest etc? Wouldn’t it also be worth trying to market your product to them? Perhaps not if the additional marketing costs are too high to secure them as customers.
Ultimately, I find the concept of a world driven by conspicuous consumption unsettling and hope that consumers shift away from this over time. I think it’s important to give consumers tools to be able to see through societal pressures and the work of marketers so that they can make better decisions for themselves.
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Great blog!
I personally believe that we humans are rational and associative. We are often being evaluated by the society based upon our belongings this is the reason why we can never neglect the society values.
We often misinterpret luxury, desires and necessity. As we move up the ladder may be what seems luxury to us right now would become a necessity. For instance prince alwaleed stated in one of his interview that he can hardly afford a continuous sleep of 4 hours and was often traveling. For him the need of products that can provide him maximum comfort are perceived as luxury by us but necessity by the prince.
According to me marketers never create the unwanted, how many times we see Bentley brooklands being advertised.
We never say whether we fall under high or upper middle class of the society but it is the society who classifies us in one of those categories. Marketers only try to advertise what associates us with our classification.These associations are actually a necessity, good perfume, good suit, nice watch builds up our confidence for an interview or addressing a meeting with which we achieve positive results, as it leaves a perception of us on others. This is what is being presented by the society, marketing is merely matching these themes created by the society.
Lastly comfort and entertainment are also necessities for human, building up desires for attaining maximum comfort and entertainment is no wrong so why if at all any advertisement is creating that unwanted is considered to be wrong as we are rational we are never going to buy a commodity which will distort our comfort.
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Very interesting piece – I love the quote, not dissimilar to one of my favourite quotes by Dave Ramsey “We buy things we don’t need with money we don’t have to impress people we don’t like.”
I have personally always wondered about the marketing of a Hermes Birkin bag, which I think plays nicely into your luxury goods piece. The Birkin is never advertised, yet is coveted by women across the world with an entry price tag of ~$15,000 and a record sale price of $221,000 and it is well known that there is a wait list for a Birkin – adding to the feeling of exclusivity and ‘specialness’. Given that we never see one advertised what makes this bag so well known and so coveted, it is likely because we see celebrities parading their Birkins around as their #1 accessory, Kanye Wests gift of a hand painted Birkin bag to Kim Kardashian made news headlines and social media went crazy over it. A Birkin is the dream for many people, it is one of the ultimate statements of ‘I have made it!’. From a consumer behaviour perspective it is about learning and memory associations, Birkin becomes associated with celebrities and the wealthy, the wait list becomes associated with exclusivity thereby creating powerful associations which mean they build their brand in a way that it is always seen but never advertised, it is powerfully associated with things we admire (not saying I admire Kim or Kanye) and in memory we have attached those certain attributes. But my example is more about how they market the Birkin to create these feelings and my statements so far likely reinforce that in the case of the Birkin bag it is likely that conspicuous consumption is at play. However the Birkin is also associated with being the finest quality, after all it is Hermes, with the accessories on high end Birkins made out of gold and even at times diamond encrusted, perhaps for many consumers it is not about conspicuous consumption but rather having the finest quality because that it what you appreciate. So in the case of Hermes is it about providing the finest quality to people with highly discerning taste, people who would not buy a product which is mass advertised or advertised at all – or is it playing into the hands of conspicuous consumption? At the end of the day it is clear Hermes has a niche market, and low direct advertising costs 🙂
Thanks for getting me thinking.
Sources:
http://www.dailymail.co.uk/tvshowbiz/article-2829204/Kim-Kardashian-proudly-carries-designer-bag-hand-painted-daughter-North-steps-Kanye-West-LA.html
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Hi amywile.
I think you’ve made some really great points here about consumer behaviour towards luxury goods which I hadn’t considered at all. It’s interesting to note how products such as the Birkin Handbag is essentially marketed through a lack of marketing. I have to admit I wasn’t really familiar with the Birkin Bag or the Hermes but found this (http://blog.bigcommerce.com/birkin-bag-exclusivity/) to be an interesting catch up.
These Birkin Bag seems to have maintained that status of exclusivity by going against all forms of conventional marketing and focusing on exclusivity and the status of peoples who manage to own one. This strategy has maintained the incredible status of the bag and feed luxury consumers desires for exclusivity.
Although the bags obviously come with ridiculous price tags, I wonder if the greater strategy of Hermes is not to use this one item to raise the perception of exclusivity of the brand as a whole. By being the supplier of a product with such obvious exclusivity does increase the perception of luxury associated with its other, more conventionally marketed products? This could be a powerful overall strategy to increase appeal to the luxury brands market as a whole.
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I would like to comment on the post by MPK732 Group 6 spjones.Marketers do take into consideration the consumers beliefs and values and that is how they plan a particular market segment. What might seem to be bizarre or of no interest to you, would be appealing to another genre of the society. A lot of research takes place while planning a consumer behavior. I am broadly speaking of FMCG’s here since they are the mass advertisers.
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Thank you for such an interesting blog. It left me thinking- is luxury related to our income and/or to other factors?
The Apple Watch or a pair of Nike shoes can be considered a luxury product for someone living in a favela in Rio de Janeiro, but probably not for someone living in Australia earning a six-figure salary. So, I searched online and found a post on the RELATIVITY OF LUXURY describing the different Types of Luxury Relativity (regional, temporal, economic, cultural and situational relativity).
Regarding the cultural relativity, or in other words the cultural approach to luxury, it is interesting to note that the attitude towards luxury can depend on the country where you live, for example. As I am French living in Australia, I thought about doing some research online on how French and Australian populations perceive luxury. I found a quite old but nevertheless interesting article: “A Cross-Cultural Comparison of Attitudes Toward the Luxury Concept in Australia and France” in which the Dubois-Laurent scale is used to study comparable samples in both countries, highlighting the cultural differences towards luxury.
After living in several countries myself, I have experienced the economical relativity of luxury. Let’s take again the example of the Apple Watch: it can be categorised as luxury for someone and “just a watch” for someone else.
The cultural and the economical luxury relativity are only 2 aspects to be considered when defining luxury. A widely available product that suddenly becomes rare can then become a luxury product (temporal relativity).
My question therefore is: do you think there is a big difference between selling luxurious products to a rich consumer and selling products that are perceived as luxurious by a middle-class consumer? Isn’t luxury Relative?
Selected sources:
http://www.conceptofluxurybrands.com/concept-of-luxury-brands/relativity-of-luxury.
Tidwell, P and Dubois, B 1996 ,”A Cross-Cultural Comparison of Attitudes Toward the Luxury Concept in Australia and France”, – Asia Pacific Advances in Consumer Research, vol. 2, pp: 31-35.
Dubois, B & Laurent, G 1994 ,”Attitudes Towards the Concept of Luxury: an Exploratory Analysis”, – Asia Pacific Advances in Consumer Research, vol. 1, pp. 273-278.
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Thank you for such an interesting blog. It left me thinking- is luxury relative to our income and/or to other factors?
The Apple Watch or a pair of Nike shoes can be considered a luxury product for someone living in a favela in Rio de Janeiro, but probably not for someone living in Australia earning a six-figure salary. So, I searched online and found a post on the RELATIVITY OF LUXURY describing the different Types of Luxury Relativity (regional, temporal, economic, cultural and situational relativity).
Regarding the cultural relativity, or in other words the cultural approach to luxury, it is interesting to note that the attitude towards luxury can depend on the country where you live, for example. As I am French living in Australia, I thought about doing some research online on how French and Australian populations perceive luxury. I found a quite old but nevertheless interesting article: “A Cross-Cultural Comparison of Attitudes Toward the Luxury Concept in Australia and France” in which the Dubois-Laurent scale is used to study comparable samples in both countries, highlighting the cultural differences towards luxury.
After living in several countries myself, I have experienced the economical relativity of luxury. Let’s take again the example of the Apple Watch: it can be categorised as luxury for someone and “just a watch” for someone else.
The cultural and the economical luxury relativity are only 2 aspects to be considered when defining luxury. A widely available product that suddenly becomes rare can then become a luxury product (temporal relativity).
My question therefore is: do you think there is a big difference between selling luxury products to the high-income consumer and selling products that are “perceived” as luxury products to the low-income consumer? What is Luxury then? It seems to me that it means something different to every one of us.
Selected sources:
http://www.conceptofluxurybrands.com/concept-of-luxury-brands/relativity-of-luxury.
Tidwell, P and Dubois, B 1996 ,”A Cross-Cultural Comparison of Attitudes Toward the Luxury Concept in Australia and France”, – Asia Pacific Advances in Consumer Research, vol. 2, pp: 31-35.
Dubois, B & Laurent, G 1994 ,”Attitudes Towards the Concept of Luxury: an Exploratory Analysis”, – Asia Pacific Advances in Consumer Research, vol. 1, pp. 273-278.
http://www.dw.com/en/what-is-luxury-dw-readers-weigh-in/a-18398524
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I agree with “pqlubc” comments. I think consumers tend to fulfil their necessities first in line with Maslow’s hierarchy of needs, however, what is a necessity and what is a luxury depends on the level of people’s income, i.e. for people with low income, food and clothing can be luxuries.
Luxury goods have many substitutes, one of which is not buying them. On one hand, marketing has a crucial role in promoting luxury products through marketing campaigns, which of course influence consumers’ decisions. On the other hand, consumer behaviour can be influenced by the culture of the country in terms of individualism versus collectivism, where people don’t feel the pressure and necessity to buy expensive products in the individualistic countries, whereas some people in the collectivistic countries, despite being financially unstable, they still buy.
Whilst some consumers may buy luxury goods in the pursuit of or devotion to pleasure, self-fulfilment, or because of their interest in high quality standards, others value luxury items because they are expensive and exclusive. In addition to the above, purchasing of specific luxury brands may be associated with the stories behind them in the hope that the purchaser’s life reflects them, to help repair a bruised ego, alleviate the interior psychological pain, i.e. to “make you feel better when you’re down in the dumps” and the desire to repair self-threat.
Previously, the motives for purchasing luxury products may include the buying experience itself, where consumers value easy shopping and a product experience that actually feels luxurious, which is for some individuals, more important than the product itself, however, this has changed now and the product became far more important than the buying experience.
Also, link No 3 below is to an interesting article “Six Reasons Why Chinese Buy Luxury Goods”, it lists Boasting, Self-Reward, Self-Expression, Investment, Gifting and Stress-release as the main reasons why Chinese people buy luxury products.
1. http://www.udel.edu/udaily/2013/feb/luxury-goods-020613.html
2. http://business.time.com/2010/05/07/study-low-self-esteem-makes-you-more-likely-to-buy-luxury-goods/
3. http://red-luxury.com/brands-retail/six-reasons-why-chinese-buy-luxury-goods-29174
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I find it fascinating that luxury products are popular and well known seemingly through a lack of marketing (on face value). It did get me thinking though, is it a lack of marketing of these luxury brands or is it a carefully thought out targeted campaign? Much like how “Gangnam Style” wasn’t simply a viral video/song but a carefully marketed and targeted campaign.(http://www.thedrum.com/news/2012/10/30/case-study-how-gangnam-style-went-viral-campaign-yg-entertainment)
I agree that their marketing efforts appear to focus on exclusivity and whom is seen with the product, versus the company selling the benefits and features of what they produce.
One of LV’s advertising campaign features Michelle Williams. Their website features a write up about this campaign but doesn’t spend much time talking about the product, rather the achievements and accomplishments of the Hollywood actress, Michelle Williams. (http://au.louisvuitton.com/eng-au/articles/michelle-williams-advertising-campaign)
This simple blog post leads me to believe that luxury brands such as LV don’t sell handbags and suitcases, they sell concepts or lifestyles.
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I agree entirely. Most, if not all, high end luxury products have at least one celebrity (but often a ‘stable’ of celebrities) either directly or indirectly endorsing their products. If George Clooney is endorsing coffee, we don’t need to know anything more about the coffee. It must be the best coffee in the world! Therefore the marketer can concentrate on the lifestyle that you can obtain by consuming said coffee, having a particular handbag/car/watch. You might even run into the man himself if you go into one of their stores! Because isn’t that what we are all after? To have our piece of their glamorous lives? To feel like a celebrity?
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Great read.
I think theres truth in conspicuous consumption being a significant driving force behind the surge in luxury goods. A lot of this is driven by increasing disposable incomes (especially in emerging markets), more choice and people aspiring to imitate the lifestyles of celebrities (or at least a taste).
Emerging economies (eg China, Russia, Brazil) provide an excellent argument for this. Emerging middle classes have shown increasing tastes for luxury goods and many brands targeting these clients. A lot of this consumption is about exclusivity and status. Case in point, China. It wasn’t long ago that Chinese people had limited choice and had similar status. Demand for luxury goods has now exploded and the market is extremely sophisticated when it comes to the likes of Gucci and Rolex.
Sources:
http://www.slate.com/articles/health_and_science/connections/2013/12/emerging_markets_luxury_s_new_breeding_ground.html
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Like Amy, I loved the quote: consumption of luxury goods is “a story about us, people, being persuaded to spend money we don’t have, on things we don’t need, to create impressions that won’t last, on people we don’t care about’.
By definition, luxury goods are not needed by anyone and are aquired via speciality purchases. We are all consumers and we all aspire to have a life and world that we’re proud of. Marketers build our expectations by creating these worlds, and attaching brands, products and services. In that sense, marketers help us create an identify for the outside world (i.e. for people we don’t know). Their products help us make assumptions about others, and for us to identify with people or groups.
Whilst our assumptions are often misplaced, the products people greater confidence in themselves, and comfort that they know the people around them.
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The Australian car market shows evidence of the growth in Conspicuous Consumption that Ciara describes.
Value brands and segments have dominated the Australian car market for many years, but luxury segments in every vehicle classification have experienced double digit growth, while value segments are shrinking or growing at much slower rates.
In several months of 2015 Mercedes entered the top 10 sales by brand, with their C class outselling the humble Ford Falcon. But it’s not only Mercedes… Luxury brands hold 8 of the 11th to 20th ranked positions YTD. Audi, BMW and Mercedes have experienced >20% growth since 2013.
Is this driven by a change in consumer behaviour only? Or are the luxury manufacturers changing their strategy?
Record low interest rates make finance deals more attractive. Luxury brands are offering branded financing, introducing entry level models and advertising price points.
But is this a good strategy?
Will prestige brands be devalued as they are made more accessible at the entry level? And what happens to the re-sale value of these vehicles as their leases expire?
Mercedes may want to watch their Brand Quality Surveys and Re-purchase retention metrics very closely…
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It does seem to be true that some people in some countries purchase goods because of signalling to other people about wealth and lifestyle. It happens in some communities that even they do not have enough money to purchase things but those people try to struggle in order to get it. In some cases, they do not even need that things but to show their friends, they much have it.
To be honest, this topic is very useful for people who still do know why they bring themselves into a struggling life, such a working hard to buy luxurious bags, despite the old one is able to use. But why do they need a new one? right !!
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I also hold the view that conspicuous consumption is being driven by societal values and the representation of status through the ability to aquire and promote the ownership of a luxury item. Having also worked and lived in Asia i have witnessed the desirability of luxury items as a measure of exhibiting ones financial status. consumers there driven to aquire name brands, exemplified by large queues at designer stores that limit numbers to promote the exclusivity of the brand despite the fact that they have additional stores only 100m down the road.
As the influence of western culture and in particular the modern trend of socialite fame driven by reality programming and social media, the world has generated consumer aspirations around individuals who live lives of excess and have fame perpetuated by that excess.
We now have Luxury brands aligning themselves to reality stars, recognising the influence they now have over large segments of consumers. Just as actors and elite athletes have traditionally been used in marketing luxury brands.
http://jingdaily.com/currency-savvy-chinese-shoppers-boost-luxury-brands-in-2015/
http://www.huffingtonpost.com/jonathan-hall/top-5-tips-for-luxury-bra_b_7926054.html
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Thanks for the post. It certainly has received a lot of responses. There is no doubt in my mind that marketers for luxury goods have a specific target market based upon segmentation (but I won’t go into that here as that is the week 4 topic).
Marketers know that customers will feel a heightened positive affect following the purchase or consumption of luxury goods and that this is a significant motivator for purchases. Interestingly in an article I read, the pride in the purchase can be classified into 2 distinct types; “authentic pride” which can be described as feelings of accomplishment and confidence and “hubristic pride” which can be descried as arrogance (McFerran, Brent, Aquino, Karl, Tracy, Jessica L). An interesting read if you have the time. Also interesting was the concept that if a high end Swiss watch was purchased to signify a major accomplishment (promotion at work, university graduation etc) the purchase would give positive feelings for the person wearing the watch (authentic pride) but people viewing the person wearing the watch were likely to judge that person as arrogant (hubristic pride). Hence a dilema for the marketer would be how to generate a loyal customer base that would contribute to the customer lifetime value (CLV) without alienating potential new customers who could see the brand as arrogant.
One method that seems prevalent is the focus on ideal quality. I watched an advertisement for Omega watches which had the catch line “the most perfect mechanical watch movement we have ever created”. Hence I would propose an avenue to overcome the potential label of arrogance would be to markets the high quality/function/reliability of the luxury good as this moves towards the extreme product performance level (as opposed to just looking good!).
I hope this stimulates some thoughts…
Omega Watch Advertisement
Source
http://ezproxy.deakin.edu.au/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=97437819&site=eds-live&scope=site
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There are many ways in which marketers motivate consumers towards higher end products.
In relations to consumer behaviour, Maslow’s Hierarchy of Needs theory proposes that consumers are motivated to purchase certain products to fulfil a particular need. The bottom of the hierarchy is comprised of people’s intrinsic needs and the top of the hierarchy is comprise of higher order needs.
The search for exalted social status through the consumption of luxury items in an effort to distinguish oneself by way of flaunting their affluence could perhaps be a behaviour motivated by the need for Esteem, as is depicted in the third tier of Maslow’s Hierarchy of Needs theory.
For these consumers, it is important to keep in mind that a number of factors may have influenced this behaviour including cultural, social, personal, and psychological factors; however, as argued by Maslow, the need will continue to prevail until fulfilled at which point this person will presumably advance to the succeeding tier in the hierarchy.
Marketers may tap into other consumer needs associated with the hierarchy as well. For example, consumers who are motivated to fulfil Physiological needs associated with health & wellness, may invest a significant amount of money in a more expensive range of food items, including but not limited to gluten free, free range, low GI, organic and so on. Similarly, you may find that consumers who are motivated to fulfil need for Safety may lean towards more high end vehicles that are associated with better safety and performance over models that perhaps may be less expensive, but are not sufficiently recognised for their safety features.
Another point to further consider is the rise of ‘inconspicuous consumption’. This emerging phenomenon, could be further defined as conspicuous ‘non-consumption’ brought on by the rise of luxury for the masses which has given birth to the idea of ‘new luxury’ involving ‘affordability, mass-market proliferation, the divorce of status and class, and availability in the mass market, ideally without undermining a brand’ (Eckhardt, 2014, p 5). Examples of this may be down-market models of luxury automobiles or readily available (i.e. through online purchases, globalisation etc.) high end luxury brands like Louis Vuitton.
Furthermore, this idea can also lend itself to a re-framed consumer perspective on what constitutes the true symbol of ‘exalted status’. For example, these consumers share the mindset that perhaps ‘less is more’ and associate status with the absence of luxury brands etc. An example of this is how philanthropy is increasingly fashionable – as illustrated by Bill and Melinda Gates Foundation which has certainly been very conspicuous.
Sources
http://eds.b.ebscohost.com.ezproxy-b.deakin.edu.au/eds/command/detail?sid=cba8fd7b-c92b-4b6e-ab9b-7e5a13a3dc4d%40sessionmgr113&vid=7&hid=119
Kalliath, T. (ed) (2014) Organisational Behaviour: A psychological perspective for the Asia-Pacific. North Ryde: McGraw-Hill Education(Australia) Pty Ltd.
http://theconsumerfactor.com/en/4-factors-influencing-consumer-behavior/
http://www.economist.com/node/5323772
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Basic Need , greed, luxury .Three different stages of human desire.
Limited available money to spend ,force us to consume only affordable goods. A good example for this is someone on low wages going to Coles and buying their ‘Home brand’ products.
The packaging of most of home brand products are plain and boring, comparing to branded product with nice labels. However content will be sufficient to fulfil our needs.
Greed: a selfish and excessive desire for more of something (as money) than is needed
http://www.merriam-webster.com/dictionary/greed
A wealthy person buying the same product to save few bucks is driven by greed?
Now take this scenario a millionaire staying in a luxury hotel, a night’s shopping worth of tens and thousands of dollars. What is this action considered as? The person is spending, because he can afford that.
Consumer’s buying behaviour is driven by their attitude and financial capacity(Mostly).
When comes to a luxury product, there are few things which trigger us to buy it.
The status we achieve by owning that(in simple terms ‘showing off’)
The work man ship of the product(Quality)
The psychological factor(Mainly force fed to consumers brain by deliberately tailored advertisements)
Status
A person driving a BMW among Toyotas and fords will achieve this. If everyone else have Ferrari’s and Jaguars he/she may not. He will then need for more to attain higher end poducts(Hierarchy of needs Abraham Maslow (1943) paper “A Theory of Human Motivation” )
Quality
Spend more and better the quality.
When consumers expect to see ‘made in France’ or ‘made in Swiss’ labels on their beloved high end product ,these days almost all are made in China. Our unconscious and corrupted mind may not relate ‘Made in China’ to ‘Quality’. Even though China produces some of the high quality products, producers tends to label things differently to maintain the faith of their customers by adding labels like ‘Designed in California and made in China’
psychological factor
Advertisements – Celebrity endorsement. Interesting series of campaigns based on day to day issues and social issues. Staged events which triggers our emotions.
Happiness campaign by Coco cola
http://us.coca-cola.com/happiness/how-to-be-happy/
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I would have to agree with your blog and in particular what Tim Johnsons states. Has society moved to a stage where they have to be the first to own or have the latest and greatest thing all the time with no exception? Also with social media these days they can tell the 100’s if not the 1000’s with a click of a button.
Does telling world know what they have, where they are and what they have done, give insight to a person or society or is it just a snap shot of what they had, where they have been at that exact point in time?
I would have to say conspicuous consumption does lead to how you are perceived in society, by the car you have, clothes you wear and also where you live as it can define what person you are. But what might be regarded as conspicuous consumption to one person may only be ‘normal’ consumption to someone else.
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This is a great blog and I found it very interesting. In particular, the comments in relation to Maslow’s Hierarchy of Needs. In considering the higher end of the pyramid which is self-esteem, respect and self-actualization, when I think about the reasons a consumer might buy a luxury item I relate this to desiring a sense of status as well as the feeling of being exclusive and perhaps even the thought of others perceiving that person as being wealthy.
Some people may be of the opinion that the purchase of a luxury item is snobby however what if we consider the feeling of accomplishment for the person purchasing this luxury item? I have a friend who has spent the last 8 months saving for a Rolex watch and the self gratification he now feels is evident. The watch is now a reminder of the hard work and patience he exhibited to save for that luxury item. I guess with this example though it is important to mention that my friend is by no means a wealthy individual. Therefore from a psychological view point, I am certain a more wealthy individual purchasing a Rolex watch would feel very different towards the luxury item purely due to the fact that it was a lot easier for them to obtain.
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Thank you for the Blog.
In my opinion, luxury have different meanings for people with different backgrounds. For example, one Chanel bag for the rich is only a bag, but maybe for student it as a status symbol of wealth and high class.
So, for the rich, purchase luxury items may based on marketers motivate such like advertisement. But for student, it may only based on conspicuous consumption and to meet themselves material interest and vanity.
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Very Good Post !
All in all, most organizations need to spend a huge measure of cash on publicizing to keep up their business sector share.All organizations are undermined by contenders. With a specific end goal to keep their associations on top of their shoppers minds, they have to utilize notices as updates.
Brand mindfulness is a key segment of advertising endeavors, as harried purchasers overpowered by the measure of business informing they see or hear use mental alternate ways to settle on their choice. Engraving in their psyches what your image is and what it remains for can build deals, especially in ranges where couple of clear contrasts are obvious among contenders. Shoppers utilize heuristics to settle on their obtaining choices, utilizing mental alternate ways to streamline the procedure and abstain from being deadened by the quantity of accessible alternatives or the requirement for steady correlations among contenders. Numerous studies have demonstrated that brand mindfulness is a common decision strategy for buyers unpracticed in purchasing an item. Building brand mindfulness can expand your piece of the pie in various ways. Being the first to get your image embedded in clients’ brains expands the boundary to passage that different brands may confront later. Since customer conduct and its broad study has been a spine of the showcasing technique of each firm, a definite and thorough investigation of every one of its viewpoints gets to be basic for the accomplishment of an association. Store areas likewise impact conduct. Swarming is another situational variable. A few studies have demonstrated that shoppers feel better about retailers who endeavor to anticipate packing in their stores. On the other hand, different studies have demonstrated that to a certain degree, swarming can have a constructive effect on a man’s purchasing background. Identity depicts a man’s aura, helps show why individuals are distinctive, and envelops a man’s novel characteristics and henceforth makes shoppers brand concious or faithful to one or more brands relying upon their suitability towards it.
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I appreciate the contents of your blog, its very well written.
There is not even an iota of doubt when we see the flourishing sector of luxury products. The driving forces behind a person to buy purchase luxury products would be additional income at their disposal providing them with the power to afford luxury products as with the changing dynamics of the society attributes like prestige, power and status and associated with owning luxury products and which is more pronounced in terms of automobiles.
For instance, a person with hefty earnings might prefer travelling in a BMW precisely rather than Honda because it exemplifies power and status even though both serve the same purpose of travelling from point A to point B.
A consumer with greater cash at her disposal would prefer purchasing a pair of Prada sunglasses rather than a regular pair of sunglasses although both offer UV protection.
So the concern today is not the purpose they serve but rather what is appealing and appreciated. And also not the constant advertisements but also the frequent display of owned luxury products by peers on social media like Facebook compels people even more to go ahead and own a similar brand. However on the other hand a person with low earnings might not be able to afford it but if he has the opportunity to purchase a luxury brand he would definitely prefer it over the regular brand. Today society looks at owning a particular luxury brand and in near future it might be exaggerated with people keeping a track of the numbers they possess. The luxury brand industry is flourishing because the affordability of people has also increased by many fold. This can be well understood by the increasing number of carriers and services of International flights as International travel has tremendously increased in the past few years which includes a vast population from the Asian countries. Also the real time comments people receive from their peers makes them believe all the more that luxury is valued.
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Purchasing luxury brands’ products does play a major role on fulfilling personal psychological need such as “showing off” and also I personally consider as individuals feeling insecurity about themselves. People buying unnecessary and overpriced products which can make them feel more securer due to the lack of confidence about their social status, work or even self confidences. Business see this opportunity by branding their products as a indication of high class or your social identity successfully capture those customers and “force” them to purchase their products.
However, luxury products are not only serving as a protection for those people with less confidence, but it also serving as a tool of socializing. People by purchasing luxury brands can help them to get along with those people with higher social status, which can create more opportunities for themselves as well as improve their social connection.
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I admire the contents of your blog. It has been constructed fantastically.
I would like to further throw light on when luxury actually started. What are the roots of this blessing or condemnation?
The term luxury started way back in the days. It is apparent in the artifacts from Egyptian period (1550-1070 BC). The paintings in the Italian era also described the existence of fashion. It was followed by King Louis XIV, in his authentic French lifestyle and Charles Frederick Worth who created the the concept of haute couture.
These concepts are now channelized by various “Luxurious brands” and deemed as luxurious products.
As given in your blog, LV, redeveloped the past tradition of King Louis XIV and made a brand worth millions.
Luxurious products are definitely costly. Some charge you more because of their goodwill and some are costly for the efforts involved in it. Lets take the example of the high end luxurious car – Bugatti Veyron. This unique car is made in 3 pieces and then assembled together. This quirky method is uncommon and has resulted in making one of the fastest cars of all times. The point here is luxurious come with a fortune but there is, at times, bonzer art involved.
Luxury is often amalgamated with fashion. Up to some extent it is true but not completely. The social standard that these luxurious products bring is reckoned as fashion. Is fashion and social standard the same?
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I think the original target of luxury aim some customers who can not offer the price. They have a clearly positioning in the marketplace , The company expected to satisfy the upper classes of society by luxury production. Some people can acquire a huge superiority than others. But this is only one section of marketing plan. They know who is the better customer and who can pay more profit in luxury. Richer is the less group in the world, They utilise some bad behavior to get more public market share, Some people is their best advertisement without cost, especially famous person.
The luxury production also has a great classification for different level. People always can find a suitable price in their goods. Even though you can buy a better one in different brand, I guess some people will keep their decision because of celebrities. And the luxury company also benefit those advantage to launch some production by lower price. They already hold a huge market share by this mode. Luxury will be more prosperous by social values.
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I think the behaviours that many consumers purchasing the luxury goods or products have become the general social phenomenon. Moreover, there are many people willing to use this behaviour to build their social status which they expected. Compared with the situation in the past, the income level and purchasing power of consumers have greatly improved obviously. Thus, it could provide more opportunities and channels to satisfy their expectations. Judging from the facts of the luxury markets, the sales of the luxury goods attracted more consumers significantly in recent years. So great is the purchasing power that they have changed our way of thinking about the luxury products, more or less.
For instance, when deciding to purchase the luxury goods, the price of them experience a less roles than before. The society improvement is reshaping our life and consumption patterns in a new way which change the expense consciousness from the consumers’ perspectives.
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Incredible. I like your blog very much.
Luxury products perfectly explain the segmentation, targeting and positioning of marketing. The segmentation of luxury products are small. They target at high-income level comsumers. The position is high quility. This stragety succeeded very well. As everyone konw its expensive, luxury products are not only normal products, but also show the owners’ social states. That is a very important point.
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