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
Sectors of luxury include:
There are four sectors of luxury and these include:
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
United Arab emirates
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
Experiences-5 (Campbell 1992)
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