A luxury good is a non-essential costly thing that people purchase to raise their standard of living. A private yacht, exclusive fashion apparels, high-end automobiles, premier watches, etc are some examples of luxury goods. These goods have a high-income elasticity of demand, meaning that they experience an increase or decline in demand based on changes in an individual’s income level. They are often associated with a certain status symbol and are not easily accessible to most consumers due to their high price tags.
Aside from the fact that these items are designed and manufactured by famous brands, they also feature excellent quality materials. They are also marketed in a swanky environment that aims to grab the attention of elite class consumers. These factors contribute to their high prices. Moreover, they have a significant impact on the society and economy in general because many people tend to trade up from cheap clothes or household appliances to designer clothing or handbags.
The demand for designer goods is rising because middle-market consumers are trading up to higher levels of quality and taste. These individuals have been broadened by education and travel, and they are more willing to pay premiums for the artisanal touches that have historically distinguished luxury products. They are also embracing the aspirations of a new generation that has grown up with the Internet and is more open to experiences.
Unlike cheap designer clothes that are produced unsustainably and unethically, the brand identity of designer labels is often anchored in their country’s culture and history. This mystique helps them stand apart from fast-fashion brands that often focus on short-term trends and cheap material. Moreover, the high-quality and durable materials that are used in the manufacture of these clothes make them attractive to customers who are seeking long-term investments.
Another reason why these products are popular is because they have a very high-touch service and an in-store environment that add to the value of the product. This makes them feel more special and gives a buyer the feeling that they have purchased something exclusively for them.
In addition to the above-mentioned benefits, these designer goods are highly sustainable as they are not mass-produced. This is because they are made using high-quality materials and are sold in small quantities. Moreover, these goods are not disposable, as they can be reused and recycled. They also don’t depreciate, which means that you can make money when you sell your designer clothes. This can be a great way to make some extra cash.