You need to know about Luxury III

Of these three concepts, the best thing to deal with should be the concept of non-necessity. We just need to look at the market capacity of this product and see how many people can own it, and we can roughly determine the degree of non-necessity of the finished product. For example, everyone needs to drink water, 100% of the share of it is a super necessity for everyone; By contrast, only a very small number of people own private jets, so for the vast majority of people, this is not a necessity.

As for the concept of good, it is relatively difficult. Each flower into each eye, the so-called good or bad is sometimes a very subjective question. For example, the design of a certain master, you like very well, he is extremely disgusted, said very bad, whether this is good or bad, there is no conclusion. You might say that you can solve this problem through a selection of people with master advice, but I prefer a simpler approach-to choose as objective as possible the criteria for good or bad. For example, in terms of fabric, 200 is better than 100, which is a relatively objective comparison; a piece of leather, without any flaws Defects are better than flawed ones, and this is also an objective criterion. If you use these objective things as far as possible to judge the good or bad of a product, it may lead to shortcomings, such as neglecting humanized things such as creativity, art, etc. But the benefits are also obvious, which is that judgment is not personal-the most obvious is that diamonds, whose “good” is measured by a series of objective criteria, are not too subjective.

Last but not least, the price is high, which is easy to judge, but in my opinion, the price alone is not enough, even the real price rather than the overrun price. In my opinion, luxury should be natural, not artificial, or market strategy expensive. What do you mean? For example, some designer clothes are often expensive, a large part of which is the design fees charged by masters. However,  it’s a fixed cost, and high design costs don’t naturally lead to high costs-you just need a lot of production and you can spread them out. In fact, the collaboration between many affordable clothing brands and major brands began the year before last, such as Matthew Williamson helping Debemhams, Philip Treacy to design clothing for Mark & Spencer. Many famous clothes sell expensive, it is very important to actively reduce the target customers, through the profit-less-sales strategy to achieve profit. 

In my opinion, this kind of expensive, can not be counted as luxury goods “expensive.” Luxury should not only be manifested in the average cost of the expensive, but also in the marginal cost of the expensive. For example, why custom-made suits, custom leather shoes are undoubtedly luxury, because of their natural expensive. In addition to using materials, the key to these products is the craft of the clothing and shoe makers themselves, which is not mass-produced, and the marginal cost of each product is roughly close to its average cost (and of course, the operation of the business). The fixed cost of marketing should be shared in.) such a product is a real luxury.

You need to know about Luxury II

According to the artistic needs and aesthetic taste of Chinese customers, Cartier launched a series of jewelry with Chinese elements, the brand quickly won the love of the Chinese people; In order to meet the needs of the Chinese market, the Chinese rich later launched dragon watch, dragon bag, dragon jewelry and so on.

First, the concept of luxury goods is constantly extended, it changes with the times in different periods have different representative products.

In China, for example, in the 1980s, “luxury goods” for people were watches, sewing machines and bicycles “three big pieces”, which gradually evolved into televisions, refrigerators and telephones. That is to say, these goods from the initial impression of “luxury”, to become a necessity today.

Second, the audience of luxury goods is a minority, that is, the wealth elite of society.

Because of the ostentatious nature of luxury goods, it is now common among the Chinese working class to save months or even half a year’s wages to buy a dress or bag similar to a luxury brand such as LV. Then wear it or take it to the bus. This has become a significant feature of some luxury consumers in China at this stage. This is why we encourage people who can consume luxury goods and strive to cultivate their cultural ideas and aristocratic temperament so that luxury consumption can eventually return to rationality and become a part of the normal operation of the market.

Third, in terms of the nature of the industry, luxury consumption industry is actually an elite industry, it is more representative of a high quality of life.

While we enjoy luxury goods, we are also pursuing a high quality of life. Top consumer goods are often associated with successful brands, excellent quality, excellent design ideas and even historical accumulation, cultural heritage, and expensive prices are the last factor. In other words, luxury is not necessarily the most expensive, expensive things are not necessarily luxury. At a deeper level, luxury goods are actually a way of life.

“Luxury goods” is actually an imported concept, referring to luxury in English. What is Luxury? The Oxford High order Dictionary explains thing that is expensive and enjoyable but not essentialize Cambridge High order Dictionary explains this.something expensive which is pleasant to have but is not necessary. The Webster Dictionary explains that:something adding to pleasure or comfort but not necessary

Although the Chinese explanation of “wasting money and excessive enjoyment” generally contains these three characteristics, English is obviously a lot more neutral and not too negative in terms of expression.

But even an English explanation is not a good explanation. Good, expensive, and unnecessary are all relative concepts, and it may be OK to use them for the explanation of nouns, but I am afraid that some strict academic discussion will not do. How good, how expensive, and how much is not a luxury. Maybe we can use the 80 / 20 rule to define the best 20 percent of the same products, and 80 percent of people are expensive and non-essential products, and maybe we can call them luxury goods. Of course, 80 / 20 is just a random word, and we can also refine it further, using, for example, 90 / 9. The luxury goods are further divided from the luxury goods.

You need to know about Luxury I

In English dictionaries, luxury is Luxury, a Latin word intended to mean “prolific fecundity”, which then evolved into wasteful and unrestrained. Most European languages assimilate this concept to describe, to be exact, certain aspects of the way of life and expenses that exceed the necessary level in the production and use of various commodities.

In his best-selling book, luxury brings plenty, Vorgon Laszler defines luxury as “luxury is a lifestyle that is considered luxurious by their respective societies as a whole or in part, and is largely determined by the product or service.” Today, the concept of luxury goods in the international community is “a kind of consumer goods with unique, scarce and rare characteristics beyond the needs of people’s survival and development”, which is also called non-necessities of life.

In the Chinese concept, luxury is almost equal to greed, profligacy, waste. In fact, from the economic point of view, luxury essence is a kind of high-grade consumption behavior. From a social point of view, is a personal grade and quality of life.

Economics defines luxury goods as goods whose demand has increased more than its income. It can range from ginseng, brand-name watches to luxury cars to luxury goods. However, luxury goods are generally considered to be very expensive items that most people cannot afford. Some luxury items are neither necessary nor of practical use, such as designer bags, fancy garments and fancy cars, private jets and luxury yachts, of course, also fall into the category of luxury goods.

Luxury goods are defined as “a kind of consumer goods with unique, rare and rare characteristics beyond people’s needs for survival and development.” Luxury goods mainly include high-grade clothing, jewelry, luxury yachts, private jets and so on. It has increased the purchasing power of Chinese consumers in the international market and is by far the world’s largest consumer of luxury goods abroad. The strong consumption power of the Chinese people has boosted the confidence of many international luxury brands in the Chinese market, speeding up the opening of new stores, expanding the second and third tier city markets, and seizing market share.

China’s initial knowledge of luxury goods dates back more than 400 years to the Ming Dynasty, when the Western missionaries Matteo Ricci and Pangdi came to Beijing and presented the two self-tolling bells as gifts to the emperor, and China’s love for luxury goods unfolded. By the Qing Dynasty, because of the enlightenment from the West, the establishment of the Office of the Qing Palace. Mainly for the Qing Dynasty royal production of all kinds of luxury goods.

In the middle of the last century, the development of China’s high-end consumer market stagnated. However, after the reform and opening up, Western high-end wristwatches, leather goods and jewelry poured into China. At one time, Chinese customers blindly worshiped imported luxury goods. Almost everything, by many Western brands despise as only brand, very easy to deal with the money people.