Luxury Goods Sales in Emerging Markets - Literature review Example

Geerts and Veg-Sala (2011) state that it is difficult to define luxury because of the subjective nature it entails. Luxury can be broadly defined as a “way of life, but also a way to buy, consume and use” instead of merely the way in which a product is produced. Alreck (1994) adds to this view by stating that what is luxurious for one person may not be the same for someone else. A Gucci handbag may be viewed with very ‘snobby’ eyes by a regular consumer of Hermes; whereas, for a Coach consumer, a Gucci bag is a dream that should be aspired to.

Berry (1994) explains luxury as all that it is erroneously and perceived as extra and superfluous. The author’s idea of luxury is that it is a modification of an already existing product. This idea is supported by Tungate (2009), who makes the argument with different car models and brands to illustrate this point. He refers to luxury cars as bringing sensual pleasure for the user, even if all automobiles have the same function and meet the same human needs by getting a person from one location to the other.

In his studies, Berry (1994) has also examined that the general public has a fascination with luxury even though it remains out of reach for most. Paredes and Borras (2008) use the line of reasoning to explain that luxury is something that is superfluous and is mostly connected with the needless possession of goods. These authors (Padres and Borras, 2008) also suggest that in societies where most of the population receives the basic human needs from Maslow’s Hierarchy of Needs, they tend to strive to rise above others.

Also, their goals will be associated with psychological aspects.  However, luxury products can have a demonstrable value, and luxury does this by establishing its value in various ways of desire that change from person to person. Luxury tends to have an exclusive ranking within its category, is the most technologically advanced and has adopted the highest quality. The elements that distinguish one type of luxury from the other are absent in the scale of excellence in terms of the quality and resources that others lack.