It is cosmopolitan truth that luxury trade name industry is still dining even during fiscal crisis because today’s people have the right mentality that luxury merchandises are purposeful and good thought out. In other words. they want to demo off their wealth and personal position. Main Forces The Macroenvironment Confronting The Luxury Brand Industry Analyzing the macroenvironment confronting the luxury trade name industry. there are demographic forces. economic forces. cultural forces and technological forces. 1 ) Demographic Forces.
Demography is the survey of human populations in footings of size. denseness. location. age. sex. race. business and other statistics “Principles of marketing” ( Kotler. Adam. Denize and Armstrong. 2008. p. 89 ) . Age It is learnt from the instance survey that coevals Y is so of import to luxury trade names. The chief ground is that most of them are individual people with individual incomes. So. their disbursement power is truly higher. compared to coevals X. Thus. recession besides does non impact them much. As a consequence. coevals Y can be considered as a confident section that prefers to pass over economy.
Furthermore. they are trade name loyal and experience personally connected to their picks. And. they get the information from the societal web like Facebook and Twitter every bit good as from the fashion-forward telecasting series Gossip Girl ( Caines. 2009 ) . In add-on. they have been attracted by those Hollywood stars like Emma Watson. Rachael Taylor. Kristen Stewart utilizing Burberry. Louis Vuitton. Chanel. etc. ( Case Study ) . Therefore. it is understood that the international luxury market is made up of immature flush citizens of the universe. Location.
Harmonizing to the “Luxury Fashion Branding” ( Okonkwo. 2007. p. 73 ) . a one-fourth of the universe who are utilizing luxury goods are Nipponese. And. most of them are over 50 old ages old who are the Centre of the Japan’s wealth. They are more willing to purchase the luxury trade names without wavering. Furthermore. Asians are really enthusiastic to try for new things and prefer to purchase the best quality because they acknowledge Western trade names as high quality. After all. the most of import ground to hold the interior decorator trade names or luxury trade names for them is for their personal position. 2 ) Economic Forces.
They consist of factors that affect consumers purchasing power and disbursement forms “Principles of marketing” ( Kotler. Adam. Denize and Armstrong. 2008. p. 89 ) . In fact. both of the power depends chiefly on the personal income and state economic system. Based on ( Yann Truong. 2010. p666 ) . Yann Truong said that lower and in-between category consumers are more interested in luxury trade names due to the planetary growing of disposable income. Indeed. the purchasing power to a great extent depends on the income. The consumer income reflects their lifestyle and living criterion. It means that the more they earn. the more they spend on luxury merchandises.
That’s why. it is studied that the sellers are detecting the alterations of the economic tendency every second in order to catch the chances. 3 ) Cultural Forces It consists of society’s basic values. perceptual experiences. penchants and behaviors “Principles of marketing” ( Kotler. Adam. Denize and Armstrong. 2008. p. 89 ) . “Brand Equity of Luxury Fashion Brands Among Chinese and U. S. Young Female Consumers” ( Jung and Shen. 2011. p. 55 ) explained that Confucian doctrine is profoundly rooted in China and Chinese people are excessively obedience to theirs higher-ups for societal harmoniousness.
Therefore. China consumers have a really strong regard for authorization compared to the United States consumers. As a consequence. Chinese are more likely to be influenced by the famous persons and sentiment leaders. Furthermore. their imitation of celebrities’ life styles is rather high. and their buying determinations are strongly influenced by the famous persons. Therefore. concern people are utilizing the famous persons to publicize their trade names in the market. 4 ) Technological Forces They affect new engineerings. making new merchandise and market chances “Principles of marketing” ( Kotler. Adam. Denize and Armstrong. 2008. P.
89 ) . It is undoubted that the engineering plays as the most powerful force determining the luxury trade name industry. Everything we use nowadays exists because of the engineering. “Luxury Fashion Branding” ( Okonkwo. 2007. p. 179 ) indicated the impact of the cyberspace on the luxury trade name industry is mind-blogging and it could alter consumer behavior and the manner the company operated. Technology introduced us with the cyberspace. cyberspace banking. recognition card and online shopping. The online shopping go really popular since the consumer merely needs a few chinks and a few proceedingss to purchase the desire trade names.
As a consequence. E-retail has become the indispensable gross revenues channel for the luxury trade names to sell their merchandises online. Clearly. both the consumers and the luxury trade names have a batch of benefits because of the engineering. Supplying up-to-date information. clients can salvage clip non to see many mercantile establishments when they want to acquire something. can do the merchandises comparing at place and they besides feel really convenient and trusty to shop online are a few benefits consumers can bask because of the engineering. Factors Influencing The Increase In Younger Consumers’ Interest In Luxury Products.
The chief factor that greatly influences immature people’s involvement in luxury trade names is Internet. Nowadays most of the immature people are blowing about half twenty-four hours of their clip on the cyberspace. The first thing they do in the forenoon is the look intoing their Facebook profile or electronic mail. That is the proven that cyberspace is really popular among immature people. Those immature people are utilizing Facebook or Twitter every twenty-four hours to pass on and portion the information with their friends. As an illustration. a 20 old ages old miss bought a Kate Spade bag and posted it on her Facebook.
Then. all of her friends or who look at her Facebook profile saw the bag and realized that this trade name is called Kate Spade from New York. and so they will purchase the same bag or the same trade name. This is how cyberspace could rush up younger consumers’ involvement in luxury trade name. Furthermore. some people like to post their favorite histrions or actresses’ exposures on their Facebook. like Kristen Stewart who is the actress of the Twilight. have oning Camilla & A ; Marc frock when she attended the film’s Paris premiere. Immediately. her exposure erosion that frock was on Facebook and some other web logs.
After a short piece. the company received the high demand for that frock ( Caines. 2009 ) . Similarly. the trade name named Billabong besides received the high response for its Hannah jacket from the clients by uploading the Stewart exposure on cyberspace. In the exposure. Stewart was have oning the Hannah jacket and shortly the company received sell-out-orders for that jacket when the Twilight fans saw the exposure ( Caines. 2009 ) . Another factor makes younger consumers interested in luxury trade names is magazine. Harmonizing to the ( Caines. 2009 ) . 18 to 27 old ages old people have been influenced the luxury trade name by the magazine.
In other words. they love to read magazine instead than the traditional newspaper. Then. they browse through who are at where and who are utilizing which merchandises. The concluding factor that immature people are interested in luxury merchandises is peer force per unit area. They want to vie with each other and demo off among their friends. But. of class. there are some immature consumers who want to acquire high quality with gorgeous design for their personal position. Equally good as. they have admired the brand’s workmanship “Innovative Tokyo” ( Fujita and Hill. 2005. p. 26 ) .
Conduct secondary research to happen out the grounds for the turning involvement in bogus luxury trade names and dry buying among immature people The bogus luxury trade names exist because of the consumers’ appetency for existent luxury trade names. And. another ground is that immature people can non afford the echt merchandises. So. they merely buy the replica things like LV and Gucci although they know that those merchandises are shams and in hapless quality “Why Do Consumers Buy Counterfeit Luxury Brands? “ ( Wilcox. Kim. Sen and Sankar. 2009. p. 248 ) .
One of the Los Angeles interior decorator besides mentioned that “It is wholly opposite from 10 old ages ago. Everybody is proud to state they got an off-price trade or a knockoff” ( Smith. 2000 ) . It showed that consumers are proud to hold good quality reproduction merchandises and even think that they are resourceful. In add-on. they even spread the words to their friends that they could happen the quality fake goods easy. And. Smith ( 2000 ) indicated that “22-year-old adult female non merely could purchase a reproduction Kate Spade bag with the bargained monetary value of $ 35 but besides receive the regards on that bag” .
It is obvious that presents. bulk of immature ladies buy merely shams and they do non care about purchasing a bogus Kate Spade bag every bit long as it has a label. Based on Smith ( 2000 ) “11-year-old girl inquire her female parent to purchase a Kate Spade pocketbook for her birthday present and the female parent bought two sham bags alternatively and feeling sure it would be enough” . Furthermore. Smith ( 2000 ) besides expressed that “Using of expensive luxury pocketbooks at school become so popular among 10- to 14-year old girls” said by one of the school functionaries. The above paragraphs explain the difference between the echt goods and the bogus goods.
Although the bogus luxury trade names are inexpensive and hapless in quality. they still have many advantages. In fact. they help to cut down the load of the parents since the existent trade names are expensive. On the other manus. they give parents the other options because purchasing existent trade names for immature kids is the indirect manner of botching their attitude and behavior. Most significantly. the replica luxury trade names could fulfill the kids and do the both party happy. Some immature shopper said that “With a luxury bag. you’re bored of it after one season” harmonizing to “Counterfeiting Exposed” ( Hopkins. Kontnik. Turnage. 2003. p. 49 ) .
It is true that some consumers might believe that they would non pay 1000s of dollars on genuine trade names when the sham trade names could be bought easy with their deal buying power. They could fulfill their demands with the bogus trade names and most significantly the quality of the bogus trade names are bettering like Korea made Lousi Vuitton called AAA quality. and so they become more reliable looking. In add-on. consumers could easy alter to other trade names or designs due to cheap offer. In drumhead. the consumers are go oning purchasing the bogus trade names although they know they are purchasing the reproduction merchandises.
Aside to the hapless quality. the bogus trade names have many advantages such as cheap in monetary value. reliable looking and exchanging to other sets or design without wavering. In add-on. the monetary value difference between the bogus luxury trade names and the echt luxury trade names is rather important nevertheless functionality is affected really small. Therefore. it is natural that consumers are turning involvement in bogus luxury trade names and purchase it over the echt trade names. Reference Caines. C. . 2009.
Young Stars raise manner bets. The Australian. [ on-line ] 2 September. Available at: & lt ; hypertext transfer protocol: //www. theaustralian. com. au/news/lifestyle/young-stars-raise-style-stakes/story-e6frg8k6-1225768442198 & gt ; [ Accessed on 14 February 2012 ] Fujita. K. and Hill. R. C. . 2005. Advanced Tokyo. United States of America: Michigan State University. Hopkins. D. . Kontnik. L. T. and Turnage. M. T. . 2003. Forging Exposed. United States of America: J. Wiley & A ; Sons. Jung. J. and Shen. D. . 2011. Brand Equity of Luxury Fashion Brands Among Chinese and U. S. Young Female Consumers. Journal of East-West Business. 17 ( 1 ) . pp. 48-69. Kotler. P. . Adam. S. . Denize. S. and Armstrong. G. . 2008. Principles of Marketing.
4th erectile dysfunction. Australia: Pearson. Okonkwo. U. . 2007. Luxury Fashion Branding. United States of America: Palgrave Macmillan. Smith. L. . 2000. Forging it in the manner universe. Los Angeles Times. [ on-line ] Available at: & lt ; hypertext transfer protocol: //articles. latimes. com/2000/mar/19/news/cl-10317 & gt ; [ Accessed 14 February 2012 ] . Truong. Y. . 2010. Personal aspirations and the ingestion of luxury goods. International Journal of Market Research. 52 ( 5 ) . pp. 1-20. Wilcox. K. . Kim. H. M. . Sen. and Sankar. . 2009. Why Do Consumers Buy Counterfeit Luxury Brands? . Journal of Marketing Research ( JMR ) . 46 ( 2 ) . pp. 247-259.