There is a law of economy, as the demand for a goods/services increases in the market, the price of the good/service rises and as the price of the good/service increases, the demand decreases. The law of luxury brands is the reverse of this. As the price of the good/service increases. The demand for luxury brands increases and as the price decreases, the demand for the luxury brand decreases. The market for the luxury brand is worth 210 billion euros worldwide and it generates 7.5% every year luxury brand market growing by 9%.
The reason for taking this topic was that the profit of margin in this industry is high and the competition is low. For those who can make good investments, this market is a profitable deal for the coming times. Here we will narrate the complete story of the luxury brand so that you get to know about this segment very well. The luxury brand and tax is this deep relationship in which the elite class donates to charity by buying expensive paintings and expensive antique art to save their tax. With this, They are successful in getting the benefit of tax benefits.
As we know about Apple mobile brand iPhone, which is established as a luxury mobile brand. Those who buys the iPhone once never imagine other mobile brand to purchase. This is the ideal example of status symbol and luxurious brand. Here we can see the luxury brand in every sector of market from bags and wallet to sports cars. These luxury brands are not affordable to middle class or lower class society, but they dreams of it.
What is Luxury Goods ? –
Luxury brand It is considered a status symbol in a society, as if you have these things, then people know that you have more money and wealth than ordinary people. The price of a luxury brand is not in the purchasing power of ordinary people, it is considered a luxury brand. For example, if you buy a Mercedes Benz, then it is considered a success symbol.
Perfumes, cars, jets, jewelry products, vintage wines, luxury hotels, watch etc. Considered to be luxury products, but in the coming times, the scope of luxury brands is increasing. In 2025 this luxury brand market considered to to be increased by 385 billion US dollars which is quire huge number. As far as Indian market is considered the luxury brand is still very famous as a status symbol.
Meaning that luxury brands and products are being made because the purchasing power of the people has started increasing, and it is going to increase further in the coming time. It is believed that the winning percentage increases your income, more than that, your desire for luxury brands increases and purchases also increase.
Luxury Brand Products –
- Luxury Hotels
- Old Preserve Wines
- beauty products
- expensive sports/business cars
- expensive cloths
- Drinking Water
Top Luxury Brand of the World –
- GUCCI -FASHION
- DIOR – FASHION
- LOUIS VUITTON – FASHION
- HERMES – FASHION
- ROLEX – WATCH
- TIFFANY – JEWELRY
- PRADA – FASHION
- VERSACE – FASHION
- RALPH LAUREN – FASHION
History of Luxury Brands –
King Maharaja people were fond of expensive things from time immemorial and history has very famous stories about the purchase of such fond people. Antiquities, Art, Antiques and Paintings This tells us the history about luxury. In today’s date, it is considered a tax evasion trick, used as a killer, in which such items are bought through status symbols.
Many times in history, due to these luxury life, many people were also infamous, but in the 18th century, the foundation of capitalism was laid where thinkers like Adam Smith say about the luxury brand that trade and luxury is the engine of the economy. There was a lot of criticism on the luxury brand, but globalization and democracy legalized the luxury brand. Today we see it is seen as an achievement in the society and not as a discredited term.
Party culture of elite society and Red carpet programs of film Industries are seen by exhibition of luxury jewelry and dresses. We could see a business culture where luxury parties and celebrations where wines are celebrated. Developed countries like Eurorean countries and America have easily accepted this culture, but countries like India and other developing and poor countries where basic problems are important . This Luxury brand culture is criticized very harshly.
Market of Luxury Brands & its Character –
The specialty of luxury goods is that when its price falls, its purchase in the market also falls and when the price of luxury goods increases, its demand increases in the market. Talking about India, it is considered a status symbol to be a four wheeler here, even though the cost of cars is very low in comparison to advanced countries, yet the car is considered a status symbol.
When the Tata company produced his ambitious project Nano, it was completely spread in the market, people see the car as a status symbol and the people who took the Nano car were not liked to see it as a status symbol. That car spread in the market. In this way the mind set of the logo about the luxury brand.
A luxury brand is considered a sign of increasing income, the item is considered to be of good quality. The buying mindset of this customer is different from the people buying life essentials. Most of the customer of luxury brand is successful businessman and bureaucrats, politicians who know that these products are over valued but still they buys this product to show their wealth and status.
Market of Luxury Brands –
In today’s era, the market of luxury brands is very big in countries like Europe and America, and countries like China, Japan are a big market for luxury goods, so in the era of globalization and internet, the luxury market has also brought its products through the Internet, whose website The scope is the international market and in this big companies spend a lot of money on branding.
The market of luxury products in developed countries is very large and performing well, but in a country like India, the luxury market is still very low compared to developed countries due to the low purchasing power of people, but it can be assumed that in the coming time. In this it may increase. If we do the same thing about China, then the market of luxury goods in China is growing very fast.
Economy & luxury Brands –
Talking about the whole economy, life in the market is the market of essential commodities, and the ordinary money that is left after that is the market for buying ordinary things. People who buy normal items want a good product at low price. Their income is ordinary income, so due to the increase in the price of things, this customer decreases in his purchase, while in the luxury brand, his customer wants to buy things at expensive prices.
In the market of luxury goods, the cost of goods is much more than what is spent in the production of the item, but the customer buys that item even after knowing that because there is a brand value towards that item in the society, which makes the purchaser’s brand value. Increases by that. The number of people who buy luxury brands in the economy is very less, but the market value of that industry is much higher in price than the general market.
Government of the every country wanted to promote these luxury brands in the economy because they collect a large part of taxes through these luxury brands. So even though a large part of the society criticized these luxury products, but government practically wants to promote these brands. As we know the growth of Indian economy and purchase power of the citizens, we could see the increase in luxury brands in India in the future market.
Veblen Goods –
In 1899, American economist Thorstein Veblen recognized this theory for the first time when he recognized that the prices of some things go in the opposite direction against the prevailing economics, and such products are called Veblen products which looked like status symbols in society. Luxury cars and watches are the most prominent products of success symbol of luxury brands.
As the talk of individual freedom spread more in the society, the freedom to do business increased and money started coming to the people. Today we see that luxury products are attractive to all people, but only a few people can buy such things. This luxury product’s character is different than proper economy rules, but it is important in globalized market where online business of these products increased tremendously of the previous decade.
Psychology of peoples for Luxurious Brands –
When a man’s income starts saving a lot after spending the necessary things in life, then he wants to display his wealth and money in the society in another way, he accomplishes this by buying luxury items. By buying such things, the message of his being Aamir is sent in the society and his goodwill increases.
It is the most effective means of demonstrating economic success, even though the cost of goods is very high. Many people cannot buy these items, they do not have a dream to buy these items, this is a status symbol for Aamir people.
Luxury Brands & Affiliate Marketing –
There will be many affiliate programs in the luxury brand, which give you income by getting good commission because the price of luxury product is very high, so bloggers or any other people doing affiliate marketing is a good way to do business. Globalization makes very easy to expand the luxury brand market to most of the countries on just one click.
In online affiliate marketing, you can get a good commission on luxury products. In the link given below, about every affiliate program company is given. After reading this, you can do your own research and decide which product to take. After China, there is a huge market for luxury products in India in the coming times. India and China are worlds mostly future’s biggest market of luxury products.
In Corona Pendemic we have seen the importance of online purchase and growth of its market. Therefore, as in the future affiliate market of luxury brand in India is a bright future through digital platform. As we have seen the most of the luxury brand in the fashion sector therefore females are the main target of these luxury brands. There are some famous websites of luxury brand we can see on online platform where this market will be grow in future.
In this way, we saw an industry in a way that interpreted the economy in its own way. This is what economists call social psychology, which is known by the name of social status symbol. Businessman knows the real value of any product, but still they purchase it with a higher price. This is the secret of the luxury products market, where status symbol is the primary reason of buying these products and showing success.
Due to the low purchasing power of people in India, luxury products are not sold in India on such a large scale, but this market is going to grow a lot in the coming time. Like China, if the growth rate of India increases, then the number of people earning more income will increase, so in future the number of people can buy the luxury products. Right now these luxury products are the culture of Developed countries like Europe and American people.
As Globalization, established since early 1990’s the purchase power of the people of the India also increased and millionaires are increased. Credit cards and installment system of bank loans are also the crucial reason of increase in the luxury brand market. Before that especially in India the luxury brand was considered to be a bad market who exploits the society and enjoys the wealth.