One of the never ending quests of human beings includes ‘indulgence in luxury’. ‘Luxury’ is among those words whose meaning varies from individual to individual. In economic terms, luxury goods are the ones for which the law of demand is reverse i.e. the demand for such products increases with price. This effect is also known as ‘Veblen effect’ or paradox.
Luxury is usually stratified in three layers viz. Accessible, Aspirational and Absolute. Also, a few other factors which determine the degree of luxury are price, uniqueness, availability, promotion, brand among others. Moreover, the luxury industry usually talks of products like perfumes and cosmetics; hard luxury; cognac; handbags and cases; furniture; vehicles etc. These products are sold through wholesale, retail or online channel.
The 2012 edition of the luxury goods market report covers the market size at the global level along with the coverage of some major regional markets like the Americas, Europe, China, and Japan. In addition the reports also provides sizing of various categories like watches, cognac, and jewelry.
Furthermore, the market dynamics includes key trends and developments (evolution of luxury goods market, industry integration, varying gender choices, and structural difference), growth drivers (rising population of HNIs, correlation with global economic growth, increasing internet penetration, sales across emerging markets) and challenges which include rising tariffs on imports of luxury goods and counterfeiting risk.