Consumer behaviour Luxury Goods

Introduction

From the earlier age in our society it is considered that luxury goods and products are always effortable by wealthy and rich people and elite class. Luxury products are not essential but they are bought for some specific reasons, like its increases self worth and social status. An easy process and idea to classify luxury product are higher price and quality .In today’s market the most two consumer generation are considered for luxury product are generation X and generation Y. This report will help to understanding and analysing to what extent the consumer behaviour of Millennials(generation Y) different to that of previous generation(e.g. Generation X and Baby Boomers)

Now -a-days at the age of globalization luxury brands market have been rapidly expanded around all over the world. Basically from 19th century research started on luxury good and brand market .If we are observe the current luxury market across the world we can see that ,all luxury brands are facing a generational transformation from one target market to another. For Baby Boomers generation (who was born in between 1946-1964) they have been achieved such kind of luxury life which they desired and their luxury appeal on experiences based rather than product. The next generation of Baby Boomers are known as generation X. According to online based shopping report generation X have a normal liking for the brand and luxury goods and also interested for premium payment system to buy their product

According to the new study from Unity marketing, for the next luxury generation (generation x) Millennials already have been created a mapping for luxury brands in between now and after 10 years. There have been occurred a biggest transformation from the time when Baby Boomers was the core target market fir the luxury goods. But over the next few years it is shown that the leading force in the luxury market is controlled by Millennials.

After Baby Boomers a large generation is waiting who are highly educated and obviously they have higher income than the Boomers. It is the high time for marketers and retailers to understanding and analyzing the demand and appeal of the Millennials for luxury goods .Market needs to be organizes in the basis of Millennials demands to all sorts of luxury product in the life of Millennials. After the retirement of Baby Boomers there must be a change will appear in their life style which always be like downscale not upper scale .As a result Millennials will become the main target market for luxury brands there is no doubt. Last few years and upcoming few years are the year for Millennials when at the age 0f 35-54 naturally all people are engaging with higher income and earnings and this is the high time for starting to spending money for their luxury product. In few cases it is not quite natural for all Millennials because of unemployment problem. So they might be late for getting married and there is less scope to start family life .So they are unable to expending money for their luxury goods.

Conclusion

From market analysis Generation X gives Importance highly price and brands makes them feel more valuable and they also think that it is not important what friends and family think about their product. On the other hand Generation Y are slightly concerned about what friend think. For Generation Y outlook and brand are important .Although there is no big differences in the value of luxury consumption on average but there are still some key differences between Generation X and Y when it is the matter of personal consumption. There is a common phenomenon in our society is that only the rich and the elite people are main consumer for luxury goods. Now-a-days wealth and good income are considered insufficient for consumption of luxury goods. There is the question is the luxury value able to making balance with consumer deeper value.

Credits:

Created with images by The National Roads and Motorists' Association - "MY15 Infiniti Q50 2.0t - First Drive" • Financial Times photos - "Business of Luxury welcome reception" • The National Roads and Motorists' Association - "MY15 Infiniti Q50 2.0t - First Drive" • ChadoNihi - "landscape luxuriant fine weather" • YS-Park - "clock time fashion"

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