Fashion and Luxury Goods Essay Example | Topics and Well Written Essays - 2250 words

Fashion and Luxury Goods - Essay Example The essay "Fashion and Luxury Goods" discovers the characteristics of Luxury goods and fashion. Luxury goods are those goods with a characteristic of being quite uncommon in the consumers’ preference due to affordability of the product. This means that goods would be luxurious when they have low demand than the supply of the commodity. This makes the product to be rare and superior in the view of the consumers’ sight. Due to its rare characteristics in the markets, these products become high priced and they are thus often not bought by every one with the desire to purchase the product. Generally, such goods would have demand increases in to several folds as results of the increases in incomes. This is contrary to the normal trend of goods and services purchases whereby the normal necessity products, the demand increases is not so significant in comparisons with the relative income increments. The makes the particular products to have varied demand transition which occur s with the dynamics occasion in the purchasing powers of the consumers. So, the major characteristic of luxury goods is that it has to change abnormally with the people’s incomes. The change of income of most people with low income makes the demand for the goods to change. For goods which are luxurious portrays a high income elasticity of demand. This implies that such goods are goods which are superior to the others. However, this should not be assumed to be the cases in the today’s world. The superiority is based on considerable factors.... Such goods in their business and economic world they must therefore to be scarce. Their scarcity can be created both in the natural ways and in the artificial methods. For instances, certain products from the mining industry are much useful in the fashion and luxury industry. This includes goods like gold and diamond products. These are products in most country because the mines resources are not available in those states. This means that such products are scarce which makes them to most people to be unavailable in the natural manner. Furthermore, through manufacturing company operations, a company may decide to produce a particular product in quantities according to their ability of production but these products fails t be adequate to satisfy the demands of such a product. Normally, when goods are scarce and demand of products is high, then the prices of goods and services goods up. However, in the cases of luxury goods, there is scarcity of the products and also the demand is low, hence our normally expectation is that the prices should below, which is not the situation. It is well observed that another characteristic for these goods is that their prices remain to be high even when the demand is low. Goods that are purchased by consumer are based on certain reasons. These are normally from the motivation which he may get from the products or from the sellers. This is widely varied depending on the many factors which are considered between the consumers and the products. This is because we have got wide varieties if goods which are preferably considered differently by the consumers in the luxury industries. There are those