Positive Trends in Emerging Markets for Luxury Goods Essay

Positive Trends in Emerging Markets for Luxury Goods Essay

Length: 1886 words (5.4 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

Opportunities:

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...


... middle of paper ...


... 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).


Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Luxury Brands Have Focused On China, Russia, India, And Brazil Essay examples

- Many luxury brands have focused on China, Russia, India, and Brazil, and Saudi Arabia (Doran, 2012; Luke, 2015). Russia was one of the biggest markets for luxury products before the global financial crisis in European countries in 2009 (Doran, 2012). Luxury products retailing has usually been Russia’s most developing sector, with the best part of global luxury companies present with the expansion of mono-brand stores. During the global financial crisis, many luxury brands had to close their stores in Moscow and St Petersburg....   [tags: LVMH, Gucci, Luxury good, Russia]

Powerful Essays
1071 words (3.1 pages)

An Example Of Simple Luxury Tree House Hotels Essay

- • Experiences - are the final events, where finished products can be consumed (memorable, transformations are effectual - mõjusad) (Pine and Gilmore, 2011). • Flatters and Wilmott (2009, cited in Leigh, Webster and Ivanov, 2013) highlight a trend in that it seems that affluent –jõukad consumers have revealed mounting dissatisfaction with excessive consumption. Many desire a wholesome and a less wasteful life. As such, there is a desire to get back to nature, something that is tranquil, basic, rooted, human and simple (Yeoman, 2008)....   [tags: Tourism, World Tourism Organization, Gaze]

Powerful Essays
1544 words (4.4 pages)

The United Kingdom And The European Union Essay

- United Kingdom has been part of the European Union since 1993. EU is both a political and economic agreement between 28 European countries. The idea came after WWII, that when countries are trading with each other, then it is highly likely that war will be avoided. Since then, it has evolved to a single market with free trade and it is as if acting as one country. But this all changed in June 2017, when UK voted 52% yes at the referendum to leave the European Union until 2019. Thus, creating the expression BREXIT that stands for Britain joined with exit....   [tags: Luxury good, LVMH, Richemont, Luxury vehicle]

Powerful Essays
796 words (2.3 pages)

The Anti Corruption Of Vietnam Essay

- From Table 2, people can learn that Vietnam’ position in the corruption index system is 112 in the world. Meanwhile, China is ranked as 83. On the scale of 0 (highly corrupt) to 100 (very clean), Vietnam has fairly admitted to having a higher corruption issue than China. However, the corruption index data represents from 2012 to 2015 in Vietnam is the same, which is 31. On the contrary, the corruption index of China seems to be unstable. In these four years, the corruption situation within this country went slightly positive in 2013 yet the performance was not as good as that in the two following years....   [tags: Luxury good, LVMH, Luxury vehicle, Gucci]

Powerful Essays
2271 words (6.5 pages)

Business Profile Of Louis Vuitton Essay

- Strategic Profile Louis Vuitton, a French designer and entrepreneur quickly made a name for himself in the fashion industry by becoming Napoleon’s wife “personal box-maker and packer.” At the age of sixteen, Vuitton and his family started the legendary workshop by creating travel trunks and the famous unpickable locks in 1859 (Louis Vuitton, 2015). As the legendary brand continues to remarkably exceed both sales and expectations, Louis Vuitton as a brand strives for pure distinction and exclusivity....   [tags: LVMH, Louis Vuitton, Luxury good, Paris]

Powerful Essays
2594 words (7.4 pages)

India's Growing Prosperity Opens Up A New Market For Luxury-Goods Firms Essay

- At the end of the 19th century, India's maharajahs discovered a Parisian designer called Louis Vuitton and flooded his small factory with orders for custom-made Rolls-Royce interiors, leather picnic hampers and modish polo-club bags. But after independence, when India's princes lost much of their wealth, the orders dried up. Then in 2002 LVMH, the world's largest luxury-goods group, made a triumphant return to India, opening a boutique in Delhi and another in Mumbai in 2004. Its target was the new breed of maharajah produced by India's liberalised economy: flush, flash, and growing in number....   [tags: India Economy Luxury Market]

Free Essays
1626 words (4.6 pages)

The Markets In White Goods Industry Essay

- In all ındustry, the marketing strategy has an important role of the markets success. Marketing issues involve lots of things such as pricing, advertising, product features, etc. All of them creates a whole which determines the market's quality and position in the industry. We can choose an industry, evaluate their marketing issues and compare them for be able to understand the competitive analysis. For example, lets choose white goods sector. Regal is one of the best in this industry, whereas the Delongi Bosphorus can be regarded from the one of lowest quality brands....   [tags: Marketing Strategy, Market Success]

Powerful Essays
931 words (2.7 pages)

Essay on The History of Markets

- The history of markets began two million years ago when barter of goods took place, these two sided negotiations provided evidence that our descendants practices primitive exchange. These activities were preparing ground for civilization, along with continuous developments which included different mediums for exchange such as money (Diamond, 1992). Markets are centralized, and an interacting point for sellers and buyers. The purpose of sellers in these open markets is to spend very small amount to advertise their products and the buyers intend to search for low cost commodities....   [tags: flea markets, barter goods, negotiations]

Powerful Essays
1176 words (3.4 pages)

Coach Is A Luxury Brand Essay

- Summary: Coach is a luxury brand that is in the market of handbags, fragrances and other leather accessories that is distributed globally to many sorts of consumers, men and women of all ages. Coach was founded in 1941 in New York City. Coach is a highly reputable company that uses its strategies to stay competitive in the luxury industry. In the following I will present Coach’s business strategy and evidence to prove why they successfully maintain a competitive advantage. Recommendations: Recommendation 1: First off I would recommend that Coach implements a plan to increase market share in emerging markets such as China or Brazil....   [tags: Gucci, Luxury good, Luxury vehicle]

Powerful Essays
710 words (2 pages)

LVMH: Diversification Strategy into Luxury Goods Essay

- LVMH: Diversification Strategy into Luxury Goods Strategic Issues      By 2002, Moet Hennessy Louis Vuitton was the world’s largest luxury products company, enjoying annual sales of 12.2 billion euros. LVMH carries the most prestigious brand names in wine, champagne, fashion, jewelry, and perfume. Upon entrance of this luxury product industry, LVMH was aware that they produced products that nobody needed, but that were desired by millions across the world. This desire in some way fulfills a fantasy, making consumers feel as though they must buy it, or else they will not be in the moment, and thus will be left behind....   [tags: CGSE Business Management Strategic Essays]

Powerful Essays
1494 words (4.3 pages)