Luxury Business "For More Than Term Paper
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Many believe this idea of luxury goods to be absolutely correct while others do not agree saying that it is a form of personal expression and accessorizing. The point still remains whether or not the price is worth pleasing a particular whim or opinion.
This is where the perception of the human mind comes into play. Perception of luxury goods to be an essential tool of quality despite the over pricing will lead many people to invest heavily on the luxury products. Perception of quality also plays a huge part, if the common man believes that the luxury goods have a high standard of quality and will project their lifestyle to be one of high standard as well, then the likelihood of investment form them will be much higher. However a negating perception of luxury goods would result in the absolute opposite. If the common man believes that the copies of luxury designs that are available at a lower price with only a little bit of difference in quality are much better to invest in, then the likelihood of him investing in such goods would be much higher. Many people could also not afford to purchase the original luxury goods and hence, wanting to maintain a certain social stature would invest in the next best copies available. There has been a lot of talk with regards to the impact that these copies have on the economy of the country.
In response to a wall street journal article titled 'an article about how small fashion businesses are negatively affected by copycats', Tiara (an NYU student) writes for the online magazine - College Fashion and says that "the article cites scarf designer Elle Sakellis as an example. Elle designed $190 Otera "evil eye" scarves after she was inspired by a wall of Greek luck totems. The scarves were quickly bought by Kitson and Intermix but when Elle didn't receive any more orders, she discovered that both stores had found a similar scarf made by Raj Imports Inc. that was selling for only $30. Unfortunately, knockoffs are, for the most part, perfectly legal. In a situation like the one above, there is not much an independent designer can do to protect their original designs from copycats" (Tiara, 2010). If you can get away looking like a thousand bucks, having spent only thirty, why wouldn't you go for it? Of course, perception and preference again play a huge role here!!
All of these aspects play a huge part in whether or not the purchase of luxury good is perceived to be worth the money. I have tried to express the perceived distinguishing patterns between branded luxury goods and others and explained the reason behind the preference for them despite the higher prices of the brands. My opinion does incline towards supporting the
...The fact of the matter is that right accessorizing is also given more importance than just merely a good appearance. The rise in social activities as well has resulted in people understanding how a luxurious lifestyle gives the proper impression; and a luxurious lifestyle is not possible without luxury goods!
There is a lot of argument brewing on whether or not those expensive luxury goods made by cheap labor instead of Italian artisans are still worth the money. What needs to be understood before framing an opinion for or against here is why there is a demand for luxury goods in the first place. Is it because of the quality of these products? Is it because of the status symbol that they project? Is it purely about fashion and accessorizing? What is the core reason behind the popularity of luxury goods? Is it purely on consumer demands that the manufacturers invest in them? There are quite a few researches conducted that have shown evidence of the biggest brands of luxury goods in the world (like Louis Vuitton, Prada, etc.) investing in cheaper labor in developing nations.
Perhaps the most important aspect to consider here is the role that consumer perception plays in the success if the luxury goods franchise. It is absolutely true that perception plays a huge part in the progress of the luxury good brands. The fact is that those who perceive the purchase of branded luxury goods to be an expensive way to establish status don't invest in brands. The opposite also stands true. Furthermore, there are many who believe that the overpricing of the branded luxury goods is justified because of the quality of the products.
The end conclusion, in simple terms, is this -- luxury is a relative term-based completely on the cultural and personal perceptions of the individuals. This is what makes the argument on its worth a tricky and extensive one as it involves a huge social and behavioral fabric of the society i.e. The perception of the common man and how it is manipulated.
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J.P. (2010). A Made in America Story -- Since 1905 | J.W. Hulme Co. The Salvage Yard. Accessed on November 3rd, 2010 from http://theselvedgeyard.wordpress.com/2010/09/25/a-made-in-america-story-since-1905-j-w-hulme-co/
Suk, J. (2009). The Law, Culture and Economics of Fashion. Stanford Law Review, 61-5, p. 1147+
Tiara, (2010). How Do Copycats Affect Small Fashion Lines? College Fashion. Accessed on November 1, 2010 from http://www.collegefashion.net/fashion-news/how-do-copycats-affect-small-fashion-lines/
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