The Luxury Goods

The luxury goods may be are fatal temptation for each girl. In economics, luxury goods are good for which demand increases more than proportionally as income rises. It present a striking contrast to "necessity goods". As the demand of "necessity goods" are not related to income increasing or decreasing. On the other hand, Begin with 2007, global economy has been stumbling under recession. As known to all, financial crisis brought to United States economy slowing down and it has spread globally effecting all countries. Economic recession directly influenced on income level and employment. In addition, consumption levels have fall off drastically. Such two characteristic factors make me interested in the relationship between luxury brand and Economic recession.

So I researched the ideas and found a few books which talked about the luxury brands in Asia under economic recession. The literature review will pay attention to a book on the cult of Luxury Brand, Impact of Personal Orientation on Luxury Brand Purchase Value, The recession what it really means for brands and Shopper Behaviour in Recession can have long term implications.

Radha Chadha is one of the most famous expert in marketing and consumer research in Asia. In the book of the cult of the Luxury Brand which presented the "lux- plosion" or the explosion of luxury brands in Asia. This book shows up the paradox of the luxury brands management in Asia market and tries to redefine the new age luxury brand consumer. In China the luxury brands have be succeeded in growing and "it will single- handedly be the biggest by 2014. "(Husband, 2007) Even like India and Tokyo, tens of thousands of women has waiting lists for luxury goods in a period. In fact according to the report provided by Bain & Company (2010), China has become the second largest market of luxury products with annual increase of more than 30% in 2010 (Lu, 2010). Radha Chadha and Paul Husband explain the paradox of simultaneously pumping up your product's status while pumping it out to the masses. (Husband) They offer a tried- and -tested approach to creating an explosive following your brand after crack the code of the cult. They outline a powerful model to explains the s pread of luxury in developed market and predict the future course for emerging markets in China and India. The study of them establishes the fact in luxury consumers purchase of new age and splurge for self actualization.

While, in my opinion based upon research, regarding the Maslow's hierarchy model, it appears that the luxury consumers decrease a lever short in Asia and luxury purchases will be more means a self esteem boost for them.