Information Technology Reference
In-Depth Information
the distance that previously existed between luxury brands and the public.
Anyone can access luxury websites and can become a part of the brand's
online universe (including those without the means to acquire the products)
and this has challenged the way luxury presents itself and the way clients
perceive luxury.
The next wave of evolution came with the materialization of the emerging
luxury markets - China, Russia, India, Brazil, the Gulf States and, increas-
ingly, Mexico - that are currently considered as those that will carry the lux-
ury industry forward in terms of growth. These markets, peppered with their
dynamic economies, new wealth expansion, emergence of wealthy segments
and an insatiable thirst for everything luxurious, have brought a revolution in
consumer perceptions towards luxury. For example, on the top of the “to do”
list of the average wealthy Chinese tourist visiting Paris is a trip to the Louis
Vuitton store on the Avenue des Champs Elysées, even if it often requires
queuing outside the store entrance for hours before being let in. Russia,
where the number of luxury stores has grown to over 400 in just five years,
has been ranked among the highest revenue generating markets for brands
like Burberry both on home soil and through Russians traveling or resident
abroad. Emerging luxury consumers are predicted to outnumber the core
luxury clients of today within ten years. These new luxury clients, whose
ideas of luxury and attitudes to its consumption are geared more towards
the projection of a new social status and an “ideal self” and less towards the
portrayal of a luxury culture - although this varies in degrees in each market -
are on the verge of changing the way luxury is perceived. In addition, the
next eleven countries identified as those that will cause the next wave of
boom in the global economy following the predicted twenty-five years
of domination of the BRIC countries (Brazil, Russia, India and China) are
showing signs of consumer groups gearing up for luxury consumption. Their
arrival will bring yet additional dimensions to the socio-cultural influences
with regard to the perception of luxury.
On the other hand, there is a rise in the social consciousness among
luxury clients in established markets regarding such issues as environmen-
tal protection, ethical practices, corporate responsibility, fair trade and sus-
tainable practices of luxury companies. The outlook of this client base has
been as a consequence of the perception of “over-availability” of luxury
offerings across different markets and the accessibility of luxury brought
about by the Internet. As a result, the definition of luxury for many has been
within the scope of intangible factors rather than tangible products. This
social consciousness has further been heightened by the crash of the finan-
cial systems of 2008 and the resulting global economic recession. In seek-
ing solace and recompense in an uncertain climate and what appears to be
an unknown future for many, the movement towards luxury sustainability
has found its forte and has led to one too many propagators among luxury
clients.
