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PERCEPTION In Popular Culture and the public imagination, certain luxury goods have become Status Symbol s as they tend to signify the purchasers ability to obtain such a good and thereby his or her income. These items commonly include Luxury Cars , luxury watches, and yachts. MARKET CHARACTERISTICS Some luxury products have been claimed to be examples of Veblen Good s, with a positive Price Elasticity Of Demand : for example, making a perfume more expensive can increase its perceived value as a luxury good to such an extent that sales can go up, rather than down. Although the technical term luxury good is independent of the goods' quality, they are generally considered to be goods at the highest end of the market in terms of quality and price. Classic luxury goods include Haute Couture clothing, accessories, and luggage. However many markets have a luxury segment including, for instance, cars, wine, and even chocolate. LUXURY BRANDS A luxury brand or '''prestige brand''' is a Brand for which a majority of its products are luxury goods. It may also include certain brands whose names are associated with luxury, high price, or high quality, though few, if any, of their goods are currently considered luxury goods. The automobile manufacturer Hummer is an example of such a brand, as a Hummer automobile is considered a status symbol, even though none of the vehicles in the Hummer line-up meet the requirements to be classified as a Luxury Car . Another market charateristic of luxury goods is their very high sensitivity to economic upturns and downturns, high profit margins as well as prices, and very tightly controlled brands. Other guidelines may apply to certain luxury markets such as the Luxury Vehicle Market . For example, following a nearly crippling attempt to widely licence their brand in the early 1990s, the Gucci brand is now largely sold in directly owned stores. The Burberry brand is generally considered to have diluted its brand image in the UK in the early 2000s by over-licensing its brand, thus reducing its cachet as a brand whose products were consumed only by the elite. LVMH (Louis Vuitton Moet Hennessy) is the largest luxury good producer in the world with over fifty brands. It made a profit of € 2bn on sales of €12bn in 2003. Other market leaders in include the Gucci Group and Richemont . LOCATIONS Like other sectors of the retail market, luxury goods retailers like to cluster their stores closely together in order to create a shopping "destination." In the case of luxury goods, these areas are generally perceived to be centers of luxury retailers.
See Also: List of leading shopping streets and districts by city SEE ALSO
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