Defining a luxury market is not easy, while the concept of a rich society is one that can be defined in terms of profit as a share of the average in the United States or any other country. Luxury can be defined in terms of its accessibility to the general population, where the division between social classes may consist in their consumption of luxury goods. What I can not afford, and you can luxury!
This is a very subjective definition, not one on which a business can draw up strategic business plans. What are the advantages of defining these terms and how they affect the American manufacturing and service industries?
To make luxury affordable for the middle classes and other luxury consumers who want it, are called "class starting", some luxury products have been created for this purpose. It gives nothing but to confuse the definition of the term “luxury market”. and is one of the reasons why it is indefinable.
Definition of a luxury market?
Professor Bernard Dubois defined luxury as a specific level. in terms of the price of any service or type of product, but this is not usually accepted, and there have been many other attempts to define “luxury” - none of them is realistic or accepted. It is probably better not to try to define a term that is not defined because it refers to the group trying to define it.
For someone who usually travels by bus, a place for a business class is a luxury. For others, a first-class place is common. Thus, luxury cannot be defined otherwise than in relation to people. American Affluence Research Center (AARC) has determined the luxury market in accordance with the richest 1% of American households. This is an attempt to place the figure in a relative amount, and you can use it if you want.
The definition of wealth?
AARC's definition of a rich society as 10% of American households in terms of income is more acceptable. In order for a definition to be accepted, people must not only understand this, but also be able to associate themselves with what is associated with it or not.
In this sense, both luxury and wealth are definable, although it is possible to be ambiguous and other final. The answer to any unacceptable definition is to offer another, and there was no other accepted definition of the luxury market. Thus, it comes down to the choice between the pricing definition of Professor Dubois or the AARC definition related to earnings.
In a sense, they are closely related to each other, because only the highest workers should be able to buy products of the highest level. The price can be included only in any definition, if it refers to products within the category, and not as an absolute figure. Thus, participants in the luxury market can afford a luxury car, but not the main private jet. Others tried to overcome this problem by associating luxury with individual experience, bringing us back to ambiguity.
Efficiency is easier to determine
These various attempts to define this term only indicate that there is no universally agreed definition and that the luxury market exists indefinitely for a wide population, but can be defined in social classes. It is difficult for those who offer the luxury market to define their own market: it is much easier to define “rich society”. in terms of income or “disposable”; income, so it was defined in the United States as the top 10% of US households in terms of income.
The manufacturing and service industries then have a measurable target population and can plan according to that, rather than using a more conceptual group than a measurable luxury market. On the other hand, a luxury item can be defined more specifically. Need for need & nbsp; remains unchanged regardless of the increase in disposable income, while the demand for luxury disproportionately increases with income.
Can luxury be determined by price?
A luxury brand, such as Armani, is just that because of the price. If the average income reaches a point where most of the population can afford Armani, then the firm will feel obliged to raise prices in order to maintain a sense of exclusivity. It is here that luxury becomes a price, not a value. The Armani suit does not improve quality, increasing the price to maintain exclusivity.
Conducting consumer research and analyzing the cost structure of a rich society will make it easier for suppliers to meet their needs. By defining the future procurement intentions of this market, especially in what is commonly seen as luxury goods, those who produce and sell such goods will be in the best position to meet these requirements when they are made.
Therefore, it is important that the term “luxury market” can be defined or not, the manufacturing industry identifies its preferred target market and determines its future intentions to buy. Whether it is luxury goods or not is irrelevant. He is ready with the right products at the right time, which is important, luxury or not. In this respect, the definition of a rich market is more important than the definition of “luxury”.
