Luxury Items

When you purchase an item for status symbol or just because you are attracted to the item, it comes in the category of luxury items. In short, you purchase luxury items out of fantasy rather than necessity.

As per the definition of economists, the item whose demand increases more than increase in income comes under the category of luxury items. On the contrary, for necessary goods, demand increases lesser than the increase in income.

Generally, the definition of luxury item may be different for various economic backgrounds. For example Air conditioner, may be a luxury item for lower income group, while for wealthier ones, it is a necessity. Similarly automobile, furniture, jewellery, wine, chocolates, and even perfumes are amongst the top luxury items. These items get the luxury item tag due to its exclusive designs, quality, higher durability, and performances.

Yet in nutshell, as the disposable income of an individual rises, his/her demand for luxury items too rises as the individual is in position to shell out more on quality, brands to join the race of purchasing luxury items.

There are some world-renowned luxury brands, whose maximum product range is quite costly and almost customized to fit the requirements of high end users. Some of such brands are Gucci, Armani, and Louis Vuitton.

Nevertheless, the common people still think that luxury items are not just their cup of tea, rather these items suits big celebrities or higher income group people. However now a days, even the luxury brands are coming up with lower cost items targeting a wider section of the society such as automobile companies like Mercedes manufacturing lower cost entry level cars for those who wants to posses luxury brands at lesser cost. Similarly, a large number of luxury garment brands are designing garments for middle-income group too. With economic slowdown, this strategy of targeting a diversified group of consumers rather than handful wealthy people is benefiting the brands as well.

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