The luxury goods may be are fatal temptation for each girl. In economics, luxury goods are good for which demand increases more than proportionally as income rises. It present a striking contrast to "necessity goods". As the demand of "necessity goods" are not related to income increasing or decreasing. On the other hand, Begin with 2007, global economy has been stumbling under recession. As known to all, financial crisis brought to United States economy slowing down and it has spread globally effecting all countries. Economic recession directly influenced on income level and employment. In addition, consumption levels have fall off drastically. Such two characteristic factors make me interested in the relationship between luxury brand and Economic recession.
So I researched the ideas and found a few books which talked about the luxury brands in Asia under economic recession. The literature review will pay attention to a book on the cult of Luxury Brand, Impact of Personal Orientation on Luxury Brand Purchase Value, Shopper Behaviour in Recession and impulsive buying behaviour in recession.
Radha Chadha is one of the most famous expert in marketing and consumer research in Asia. In the book of the cult of the Luxury Brand which presented the "lux- plosion" or the explosion of luxury brands in Asia. This book shows up the paradox of the luxury brands management in Asia market and tries to redefine the new age luxury brand consumer. In China the luxury brands have be succeeded in growing and ‘it will single- handedly be the biggest by 2014. ’(Husband, 2007) Even like India and Tokyo, tens of thousands of women has waiting lists for luxury goods in a period. In fact according to the report provided by Bain & Company (2010), China has become the second largest market of luxury products with annual increase of more than 30% in 2010 (Lu, 2010). Radha Chadha and Paul Husband explain the paradox of simultaneously pumping up your product's status while pumping it out to the masses. (Husband) They offer a tried- and -tested approach to creating an explosive following your brand after crack the code of the cult. They outline a powerful model to explains the spread of luxury in developed market and predict the future course for emerging markets in China and India. The study of them establishes the fact in luxury consumers purchase of new age and splurge for self actualization. While, in my opinion based upon research, regarding the Maslow's hierarchy model, it appears that the luxury consumers decrease a lever short in Asia with economic recession but luxury purchases will be more means a self esteem boost for them. On the other hand, use critical analysis of this book, I find that Husband & Chadha maybe ignore a problem which is social economic change like financial crisis. In fact since 2007 global economic has become slowdown. In the light of the current economic slowdown the book does not have discussion about it. They predict the luxury brand in China and Asia in the future, they only focus on the chang in the market rather than big economic environment.
As a certain number of people have the cult of luxury brands in market, luxury consumption has long been a important element of global economy such as incomparable market value, superior image and its important role in globalization (Keller, 2009). In the book of Impact of Personal Orientation on Luxury Brand Purchase Value, Tsai identifies that luxury consumption could be divided into two parts which are socially oriented and personally oriented. In social orientation there are social salience and social identification, furthermore, personal orientation include personally attractive benefits, personally symbolic benefits and personally utilitarian benefits what are completely the other way to the social about buying luxury goods to impress others (Tsai, 2005). Personal attractive benefits means product likes luxury good which plays a role in...
Bibliography: • KELLER, K. L. (2009) Managing the growth trade off: Challenges and opportunities in luxury branding. Journal of Brand Management, 16(5-6), 290-301.
• LU, P. X. (2010) Luxury consumer behavior in mainland China: What exists behind the facade of new wealth? The European Business Review [Online].
• SHUKLA, P.(2009) Knowledge especially in the field of management and marketing: Impulsive buying behaviour in recession, 131-132.
• SUE, PHILIPS, S. S. (2008). Inside the Affluent Space: A View from the top to anticipate the needs of the emerging affluent. Asia Pacific conference. Singapore: ESOMAR
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• FORBES (2010) "Second- Hand Luxury Market On The Rise In China" Available at: http://www.forbes.com/sites/china/2010/06/24/second-hand-luxury-market-on-the-rise-in-china/ [Accessed 31/10/2012]
• WIKIPEDIA (2010) "Literature Review" Available at: http://en.wikipedia.org/wiki/Literature_review [Accessed 1/11/2012]
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