Environmental Analysis Of The Luxury Market

Luxury brands argon visualizeing for new potential markets to incline into. According to studies done by various researchers, the young raft are becoming potential consumers in the luxuriousness markets (Twitchell, 2002; Kim & Ko, 2010). soonest studies sight that most consumers who supposek for highlife products would use it to register their high social value (Mason, 1992). Hence, luxury brands have been evermore striving to secure profits by offering saucy 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 sleeping accommodation of Commerce(2004) has estimated that this attention is losing as much as $12 one thousand thousand 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 s ee 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 maturement 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 diarrhoea a critical role in the overall expenses and overstatement of the firms. Some of the changes that the administration can carry out are the changes in taxation laws and implementing a new legal indispensability ! for manufacturing. These policies can lead to extensive consequences for manufacturers. For instance, if corporate taxes were to molest, it could result in an overall decrease in net profits. Or if the authorities 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, society it on our website: OrderEssay.net

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