Luxury and its sectors Essay

Luxury and its sectors

Luxury can be defined as something that is not a need. It is secondary and is viewed as a symbol of being lavish. It is thought to bring comfort and pleasure

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Sectors of luxury include:

There are four sectors of luxury and these include:

Automobiles

Personal luxuries that include clothes, fashion and accessories

Home luxuries like air freshener, flower pots, paintings.

Experiences like going for a trip to a foreign country.(Babson 1967)

Quantification of these sectors in market share.

Market share is defined an indication of how well a given company’s product is doing in relation too other companies in its industry. The automobile sector takes the largest market share (34%), it is then closely followed by the experiences sector (28%), then the personal luxuries (22%) and lastly the home luxuries sector (16%) (Cherington 1995)

Target groups for each sector

Automobile sector- it cuts across a wide range of consumers depending on the type of car. The very affluent like footballers and celebrities, average consumers with families and businessmen who transport merchandise.

Home luxuries target housewives or home decorators. Personal luxuries mainly target young people who are conscious about their images. Lastly, experiences target the older population as this group has a lot of free time on their hands. (Blankenship 1983)

Total and sector consumption of luxury for the top10 luxury consumers in the world

Luxembourg

 
Automobiles (%)
Experiences (%)
Personal luxuries
Home luxuries
Total consumption
Luxembourg
22
28
13
37
$24000
Equatorial guinea
24
10
16
40
$19000
United Arab emirates
46
32
5
19
$17000
Norway
23
41
9
17
$13000
Ireland
10
16
40
24
$11000
United states
19
16
14
31
$10000
Andorra
20
30
31
29
$9000
Iceland
13
37
28
22
$9000
Denmark
15
25
12
38
$7000
Austria
9
23
17
41
$6000
Total and sector consumption of luxury for Mexico

Mexico is a relatively poor country in comparison to the world’s richest economies. Its total consumption of luxury goods is $ 290 while percentages are

Automobiles -46

Personal luxuries-32

Home luxuries-19

Experiences-5 (Campbell 1992)

 

 

 

Reference

Babson, R. W. and Clarence, N. S. (1967): Consumer protection; how it can be secured, Vanguard Press

Blankenship, A. B. (1983): Consumer and opinion research; the questionnaire technique, New York press

Campbell, P. C. (1992): The consumer interest: a study in consumer economics. New York press

Cherington, P. T. (1995): The consumer looks at advertising. London and New York, oxford publication

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