How Globalization Affects Luxury Goods Industry?
Andy Warhol, a pioneer in the visual art movement once said: “Whenever people and civilizations get degenerate and materialistic, they always point at the outward beauty and riches and say that if what they were doing was bad, they wouldn’t being doing so well, being so rich and beautiful” (Warhol, 1975). Throughout history, luxury emerged as early as civilization did. For old Romans, the concept of luxury was a “disruptive power of desire”. They set up the first laws about luxury: “how much could be spent on banquets and adornment” (Ward, 2011). Since the rise of Christianity, luxury stared to changed its meaning to be related to lust and sexuality. Until 17th century, perspectives of
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The most significant events during the process of economic globalization are the phases of the economic crisis, and it is an inevitable phenomenon in the process of capitalist economic development. The worldwide economic crisis exploded during 1973-1975 results from the surplus product of the capitalist countries. To apply to this situation, developed countries, especially the Westerns, changed the strategy, took advantage of the markets of socialist developing countries, and pushed inflation goods into socialist developing countries. Take China as an example, since China implemented the reform and opening up policy, Montagut, a famous French brand, became the first luxury brand flew into Chinese market. I want to share my personal experience, when I was in childhood, at the age of five; I remembered that my mother she bought a blue pink Montagut shirt with exquisite clipping and delicate design. The shirt cost her 800 Yuan, which is some sort of astronomical figure to most families in China at that time. But this shopping experience gave her a great sense of satisfaction. Observing from this case, we can find that, at that time, Chinese people considered Montagut as a luxury brand, which is a symbol of wealth and social status. According to the Economist:
Nowadays, China is already the largest market for Louis Vuitton, a maker of surprisingly expensive handbags, accounting for 15% of its global sales. Within three years, reckons Aaron