Large Market for luxury goods and positive trends in emerging markets
Trends that control the global luxury goods market are globalization, consolidation, and diversification (Tavoulari 1). Globalization is a result of the increased availability of these goods, additional luxury brands, and an increase in tourism. Consolidation involves the growth of big companies and ownership of brands across many divisions of luxury products. LVMH is one example, demonstrating to be one of the top luxury companies that dominate the market in segments ranging from luxury drinks to fashion and cosmetics. This growth in the luxury market has greatly extended the availability of luxury goods to a wider audience of consumers. Luxury goods have also become more affordable to a wider range of consumers due to higher incomes in a number of emerging markets, such as the Middle East, China, Russia, and India (Tavoulari 1). At one point you had to travel to Paris, New York’s 5th Avenue or Rodeo Drive to shop at the luxury stores. However, today you can find luxury brands in malls all around the country. You can also go online and find a wide selection of the luxury brands to shop to have delivered to your door. Examples are Gucci, Louis Vuitton, Prada, etc. Luxury goods are no longer limited to just the upper class. Like in the emerging markets, today more and more people feel entitled to luxury goods. They strive for an escalated lifestyle. It is now becoming an achievable necessity.
The number of Chinese, Indians and Middle Eastern consumers who can afford luxury goods is increasing, despite the economic downturn in emerging markets, luxury-goods prices are actually much higher than in Europe (Tavoulari 1). In 2010, consumers in Ch...
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... are a huge threat to our water system. PETA states that large amounts of energy and chemicals are required in order to produce leather goods. LVMH has created a global charter called Environmental Affairs Department, which formulates protection standards and strategies for the environment. It coordinates actions and encourages its subsidiaries to adopt the “best ecological practices” across all divisions. However, the continue production of leather goods still pose a threat to the environment. It is critical for LVMH to continue to contend with developing eco-friendly strategies in order to continue to protect the environment. This will require new ways of thinking breaking away from tradition. Many brands have opted to develop non-leather products such as Stella Mccartney, whose bags are created from eco faux nappa, which is made from vegetable oil (Ramirez 1).
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