Environmental Analysis Of The Luxury Market

Luxury brands are looking for new potential markets to angle into. According to studies done by various researchers, the young multitude are becoming potential consumers in the luxuriousness markets (Twitchell, 2002; Kim & Ko, 2010). earliest studies sight that most consumers who seek for luxury products would use it to show their high social value (Mason, 1992). Hence, luxury brands have been everlastingly striving to secure profits by offering novel value to consumers via quality products and services, customer management, retail strategies and creative marketing. in spite of the efforts of most luxury brand marketers, the International Chamber of Commerce(2004) has estimated that this attention is losing as much as $12 billion every(prenominal) year to counterfeiting. The existence of luxury counterfeits has brought in more options for consumers. If luxury firms want to tap the increment youth market, it is important to see to it the factors that is challenging them and how to overcome these challenges. This article aims to discuss the main forces of the macro-environment in the luxury market, the factors that might be influencing the young consumer interest in luxury goods and to find out if there is a growing interest in counterfeits purchases among young people.




The main forces of the macro-environment in the look luxury industry is politics, technology, culture, economics and demographic (Mike, 2008).
Political forces diarrhea a critical role in the overall expenses and enlargement of the firms. Some of the changes that the administration can carry out are the changes in taxation laws and implementing a new legal compulsion for manufacturing. These policies can lead to extensive consequences for manufacturers. For instance, if corporate taxes were to raise, it could result in an overall decrease in net profits. Or if the government implements minimum wage policy, cost of production would increase (Mike, 2008).

scientific forces have always been a driving factor to raise the productivity of any...If you want to get a full essay, rescript it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .