The Importance Of Luxury Brands

If you walk down the Fifth Avenue, New York, many women wear luxury brands such as Chanel, Hermes, Gucci. According to general view on consumer behaviour, consumers rationally make the decision to purchase products that offer them the most magnificent value, and buyers also emotionally focus on the feeling of pleasure and happiness received from the goods. Predominantly, people wish to obtain goods that are worthy to pay and made by high quality of materials. There is one thing that could fulfil buyers’ desire which are luxury brands, a brand for which a majority of its products are luxury goods which are high price or high quality. In term of economy, luxury brands play a crucial role in the circular flow. The larger the brands grow, the better …show more content…
The prosperity of prestige brands could lead to the increase of employment within the country. As the brands are getting more popular, the demand for the products consistently rises up. Unavoidably, the production-base have to expand and produce more number of goods in order to satisfy the needs of customers. To put it simple, the more the brands expand, the more labors and the more skilled artisans are hired. For example, if Louis Vuitton wants to open another new store in the center of Bangkok, they need to hire new more staff to work and operate the stores to satisfy the customers. In addition, the limited number of goods per collection in some brands could lead to competition to own the products at any price which generate more money into the economic system. For example, recently, the cooperation between Louis Vuitton and Supreme was the phenomenon throughout the world. In Tokyo, Japan, customers went to queue up more than 7,000 persons before the shop opened to purchase the products from Louis Vuitton X Supreme collection and there is not everybody who has a chance to grasp them due to the limited number of products which result in resale price. Predictably, the resale price raised more than two times from the original price, however, some customers found no problem to purchase the goods at a higher price. Thus, employment and purchasing …show more content…
Aforementioned, as the reputation and attractiveness of the country were built by the luxury brands, of course, many foreign investors want to invest in the successful country that has a lower risk to lose the money. Today, many of these brands are run by corporations which have transformed these small sized businesses into thriving large sized brands which result in the reliability of the image of the country. As the luxury brands’ price is high, the buying power in the country that operated luxury brands are also high as well as the GDP of the country which both buying power and GDP are one of the main and significant factors for Foreign direct investment or FDI to analyze the chance of the development of their company. If both factors are in high level, the increasing opportunities for foreigner investment are also high which mean that the economy within the country and worldwide would thrive and earn more massive