Luxury Brand
It is universal truth that luxury brand industry is still booming even during financial crisis because today 's people have the right mind-set that luxury products are purposeful and well thought out. In other words, they want to show off their wealth and personal status.
Main Forces The Macroenvironment Facing The Luxury Brand Industry
Analysing the macroenvironment facing the luxury brand industry, there are demographic forces, economic forces, cultural forces and technological forces.
1) Demographic Forces
Demography is the study of human populations in terms of size, density, location, age, sex, race, occupation and other statistics “Principles of marketing” (Kotler, Adam, Denize and Armstrong, 2008, p.89).
Age
It is learnt from the case study that generation Y is so important to luxury brands. The main reason is that most of them are single people with single incomes. So, their spending power is really higher, compared to generation X. Thus, recession also does not affect them much. As a result, generation Y can be considered as a confident segment that prefers to spend over saving. Moreover, they are brand loyal and feel personally connected to their choices. And, they get the information from the social web like Facebook and Twitter as well as from the fashion-forward television series Gossip Girl (Caines, 2009). In addition, they have been attracted by those Hollywood stars like Emma Watson, Rachael Taylor, Kristen Stewart using Burberry, Louis Vuitton, Chanel, etc. (Case Study). Therefore, it is understood that the international luxury market is made up of young affluent citizens of the world.
Location
According to the “Luxury Fashion Branding” (Okonkwo, 2007, p.73), a quarter of the world who are using luxury goods are Japanese. And, most of them are over fifty years old who are the centre of the Japan’s wealth. They are more willing to buy the luxury brands without hesitating. Moreover, Asians are very enthusiastic to
Main Forces The Macroenvironment Facing The Luxury Brand Industry
Analysing the macroenvironment facing the luxury brand industry, there are demographic forces, economic forces, cultural forces and technological forces.
1) Demographic Forces
Demography is the study of human populations in terms of size, density, location, age, sex, race, occupation and other statistics “Principles of marketing” (Kotler, Adam, Denize and Armstrong, 2008, p.89).
Age
It is learnt from the case study that generation Y is so important to luxury brands. The main reason is that most of them are single people with single incomes. So, their spending power is really higher, compared to generation X. Thus, recession also does not affect them much. As a result, generation Y can be considered as a confident segment that prefers to spend over saving. Moreover, they are brand loyal and feel personally connected to their choices. And, they get the information from the social web like Facebook and Twitter as well as from the fashion-forward television series Gossip Girl (Caines, 2009). In addition, they have been attracted by those Hollywood stars like Emma Watson, Rachael Taylor, Kristen Stewart using Burberry, Louis Vuitton, Chanel, etc. (Case Study). Therefore, it is understood that the international luxury market is made up of young affluent citizens of the world.
Location
According to the “Luxury Fashion Branding” (Okonkwo, 2007, p.73), a quarter of the world who are using luxury goods are Japanese. And, most of them are over fifty years old who are the centre of the Japan’s wealth. They are more willing to buy the luxury brands without hesitating. Moreover, Asians are very enthusiastic to