HOME

TheInfoList



OR:

In
economics Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics anal ...
, a luxury good (or upmarket good) is a good for which demand increases more than what is proportional as income rises, so that expenditures on the good become a greater proportion of overall spending. Luxury goods are in contrast to
necessity good In economics, a necessity good or a necessary good is a type of normal good. Necessity goods are product(s) and services that consumers will buy regardless of the changes in their income levels, therefore making these products less sensitive to in ...
s, where demand increases proportionally less than income. ''Luxury goods'' is often used synonymously with '' superior goods''.


Definition

The word "luxury" originated from the
Latin Latin (, or , ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally a dialect spoken in the lower Tiber area (then known as Latium) around present-day Rome, but through ...
word ''luxuria'', which means exuberance, excess, or abundance. A luxury good can be identified by comparing the demand for the good at one point in time against the demand for the good at a different point in time, at a different income level. When personal income increases, demand for luxury goods increases even more than income does. Conversely, when personal income decreases, demand for luxury goods drops even more than income does. For example, if income rises 1%, and the demand for a product rises 2%, then the product is a luxury good. This contrasts with ''necessity goods'', or ''basic goods'', for which demand stays the same or decreases only slightly as income decreases.


Scope of the term

With increasing accessibility to luxury goods, new product categories have been created within the luxury market, called "accessible luxury" or "mass luxury". These are meant specifically for the
middle class The middle class refers to a class of people in the middle of a social hierarchy, often defined by occupation, income, education, or social status. The term has historically been associated with modernity, capitalism and political debate. C ...
, sometimes called the "aspiring class" in this context. Because luxury has now diffused into the masses, defining the word has become more difficult.


Confusion with normal goods

"Superior goods" is the gradable antonym of " inferior goods". If the quantity of an item demanded increases with income, but not by enough to increase the share of the
budget A budget is a calculation play, usually but not always financial, for a defined period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including time, costs and expenses, environme ...
spent on it, then it is only a normal good and is not a superior good. Consumption of all normal goods increases as income increases. For example, if income increases by 50%, then consumption will increase (maybe by only 1%, maybe by 40%, maybe by 70%). A superior good is a normal good for which the proportional consumption increase exceeds the proportional income increase. So, if income increases by 50% then consumption of a superior good will increase by more than 50% (maybe 51%, maybe 70%). In economics terminology, all goods with an income elasticity of demand greater than zero are "normal", but only the subset having income elasticity of demand > 1 are "superior". Some texts on
microeconomics Microeconomics is a branch of mainstream economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. Microeconomics fo ...
use the term ''superior-good'' as the sole alternative to an ''inferior good'', making "superior goods" and "normal goods" synonymous. Where this is done, a product making up an increasing share of spending under income increases is often called an ''ultra-superior good''.


Art history

Though often verging on the meaningless in modern marketing, "luxury" remains a legitimate and current technical term in
art history Art history is the study of aesthetic objects and visual expression in historical and stylistic context. Traditionally, the discipline of art history emphasized painting, drawing, sculpture, architecture, ceramics and decorative arts; yet today, ...
for objects that are especially highly decorated to very high standards and use expensive materials. The term is especially used for
medieval In the history of Europe, the Middle Ages or medieval period lasted approximately from the late 5th to the late 15th centuries, similar to the post-classical period of global history. It began with the fall of the Western Roman Empire a ...
manuscript A manuscript (abbreviated MS for singular and MSS for plural) was, traditionally, any document written by hand – or, once practical typewriters became available, typewritten – as opposed to mechanically printed or reproduced i ...
s to distinguish between practical working books for normal use, and fully
illuminated manuscript An illuminated manuscript is a formally prepared document where the text is often supplemented with flourishes such as borders and miniature illustrations. Often used in the Roman Catholic Church for prayers, liturgical services and psalms, th ...
s, that were often bound in treasure bindings with metalwork and jewels. These are often much larger, with less text on each page and many illustrations, and if liturgical texts were originally usually kept on the
altar An altar is a table or platform for the presentation of religious offerings, for sacrifices, or for other ritualistic purposes. Altars are found at shrines, temples, churches, and other places of worship. They are used particularly in pagan ...
or
sacristy A sacristy, also known as a vestry or preparation room, is a room in Christian churches for the keeping of vestments (such as the alb and chasuble) and other church furnishings, sacred vessels, and parish records. The sacristy is usually locate ...
rather any library that the church or
monastery A monastery is a building or complex of buildings comprising the domestic quarters and workplaces of monastics, monks or nuns, whether living in communities or alone (hermits). A monastery generally includes a place reserved for prayer whic ...
who owned them may have had. Secular luxury manuscripts were commissioned by the very wealthy and differed in the same ways from cheaper books. "Luxury" may be used for other
applied arts The applied arts are all the arts that apply design and decoration to everyday and essentially practical objects in order to make them aesthetically pleasing."Applied art" in ''The Oxford Dictionary of Art''. Online edition. Oxford Univers ...
where both utilitarian and luxury versions of the same types of objects were made. This might cover metalwork, ceramics, glass, arms and armor, and a wide range of objects. It is much less used for objects with no function beyond being an artwork: paintings, drawings, and
sculpture Sculpture is the branch of the visual arts that operates in three dimensions. Sculpture is the three-dimensional art work which is physically presented in the dimensions of height, width and depth. It is one of the plastic arts. Durable ...
, even though the disparity in cost between an expensive and cheap work may have been as large.


Market


Characteristics

Luxury goods have high income elasticity of demand: as people become wealthier, they will buy proportionately more luxury goods. This also means, however, that should there be a decline in income, its demand will drop more than proportionately. Income elasticity of demand is not constant with respect to income and may change signs at different levels of income. That is to say, a luxury good may become a
necessity good In economics, a necessity good or a necessary good is a type of normal good. Necessity goods are product(s) and services that consumers will buy regardless of the changes in their income levels, therefore making these products less sensitive to in ...
or even an inferior good at different income levels. Some luxury products have been claimed to be examples of Veblen goods, with a positive
price elasticity of demand A good's price elasticity of demand (E_d, PED) is a measure of how sensitive the quantity demanded is to its price. When the price rises, quantity demanded falls for almost any good, but it falls more for some than for others. The price elastici ...
: 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. However, Veblen goods are not synonymous with luxury goods. 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. Many markets have a luxury segment including, for example, luxury versions of
automobile A car or automobile is a motor vehicle with wheels. Most definitions of ''cars'' say that they run primarily on roads, seat one to eight people, have four wheels, and mainly transport people instead of goods. The year 1886 is regarded ...
s,
yacht A yacht is a sailing or power vessel used for pleasure, cruising, or racing. There is no standard definition, though the term generally applies to vessels with a cabin intended for overnight use. To be termed a , as opposed to a , such a pleasu ...
s,
wine Wine is an alcoholic drink typically made from Fermentation in winemaking, fermented grapes. Yeast in winemaking, Yeast consumes the sugar in the grapes and converts it to ethanol and carbon dioxide, releasing heat in the process. Different ...
,
bottled water Bottled water is drinking water (e.g., well water, distilled water, mineral water, or spring water) packaged in plastic or glass water bottles. Bottled water may be carbonated or not. Sizes range from small single serving bottles to lar ...
,
coffee Coffee is a drink prepared from roasted coffee beans. Darkly colored, bitter, and slightly acidic, coffee has a stimulating effect on humans, primarily due to its caffeine content. It is the most popular hot drink in the world. Seeds of ...
, tea, foods,
watches A watch is a portable timepiece intended to be carried or worn by a person. It is designed to keep a consistent movement despite the motions caused by the person's activities. A wristwatch is designed to be worn around the wrist, attached b ...
,
clothes Clothing (also known as clothes, apparel, and attire) are items worn on the human body, body. Typically, clothing is made of fabrics or textiles, but over time it has included garments made from animal skin and other thin sheets of materials ...
,
jewelry Jewellery ( UK) or jewelry ( U.S.) consists of decorative items worn for personal adornment, such as brooches, rings, necklaces, earrings, pendants, bracelets, and cufflinks. Jewellery may be attached to the body or the clothes. From a w ...
, and high fidelity sound equipment. Luxuries may be services. The hiring of full-time or live-in domestic servants is a luxury reflecting disparities of income. Some financial services, especially in some brokerage houses, can be considered luxury services by default because persons in lower-income brackets generally do not use them. Luxury goods often have special luxury packaging to differentiate the products from mainstream competitors.


Trends

Originally, luxury goods were available only to the very wealthy and "aristocratic world of old money" that offered them a history of tradition, superior quality, along with a pampered buying experience. Luxury goods have been transformed by a shift from custom-made (
bespoke The word ''bespoke'' () has evolved from a verb meaning 'to speak for something', to its contemporary usage as an adjective. Originally, the adjective ''bespoke'' described tailor-made suits and shoes. Later, it described anything commissioned t ...
) works with exclusive distribution practices by specialized, quality-minded family-run and small businesses to a
mass production Mass production, also known as flow production or continuous production, is the production of substantial amounts of standardized products in a constant flow, including and especially on assembly lines. Together with job production and ba ...
of specialty
brand A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create an ...
ed goods by profit-focused large corporations and marketers. The trend in modern luxury is simply a product or service that is marketed, packaged, and sold by global corporations that are focused "on growth, visibility, brand awareness, advertising, and, above all, profits." Increasingly, luxury logos now available to all consumers at a premium price across the world including online. Global consumer companies, such as
Procter & Gamble The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. It specializes in a wide range of personal health/consumer he ...
, are also attracted to the industry, due to the difficulty of making a
profit Profit may refer to: Business and law * Profit (accounting), the difference between the purchase price and the costs of bringing to market * Profit (economics), normal profit and economic profit * Profit (real property), a nonpossessory inter ...
in the mass consumer goods market. The customer base for various luxury goods continue to be more culturally diversified, and this presents more unseen challenges and new opportunities to companies in this industry. The three dominant trends in the global luxury goods market are: *
Globalization Globalization, or globalisation (Commonwealth English; see spelling differences), is the process of interaction and integration among people, companies, and governments worldwide. The term ''globalization'' first appeared in the early 20t ...
* Consolidation: Consolidation involves the growth of big companies and ownership of brands across many segments of luxury products. Examples include Kering,
LVMH LVMH Moët Hennessy Louis Vuitton (), commonly known as LVMH, is a French holding multinational corporation and conglomerate specializing in luxury goods, headquartered in Paris. The company was formed in 1987 through the merger of fashion house ...
and Richemont, which dominate the market in areas ranging from luxury drinks to fashion and cosmetics. *
Diversification Diversification may refer to: Biology and agriculture * Genetic divergence, emergence of subpopulations that have accumulated independent genetic changes * Agricultural diversification involves the re-allocation of some of a farm's resources to n ...


Size

The luxury goods market has been on an upward climb for many years. Apart from the setback caused by the
1997 Asian Financial Crisis The Asian financial crisis was a period of financial crisis that gripped much of East Asia and Southeast Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion. However, the recovery in 1998– ...
, the industry has performed well, particularly in 2000. In that year, the world luxury goods market was worth close to $170 billion and grew 7.9 percent. The United States has been the largest regional market for luxury goods and is estimated to continue to be the leading personal luxury goods market in 2013, with a value of 62.5 billion euros. The largest sector in this category was luxury drinks, including premium whisky, champagne, and
cognac Cognac ( , also , ) is a variety of brandy named after the commune of Cognac, France. It is produced in the surrounding wine-growing region in the departments of Charente and Charente-Maritime. Cognac production falls under French appella ...
. This sector was the only one that suffered a decline in value (-0.9 percent). The watches and jewelry section showed the strongest performance, growing in value by 23.3 percent, while the clothing and accessories section grew 11.6 percent between 1996 and 2000, to $32.8 billion. The largest ten markets for luxury goods account for 83 percent of overall sales, and include Japan, China, United States, Russia, Germany, Italy, France, United Kingdom, Brazil, Spain, and Switzerland. In 2012,
China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's List of countries and dependencies by population, most populous country, with a Population of China, population exceeding 1.4 billion, slig ...
surpassed
Japan Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the n ...
as the world's largest luxury market. China's luxury consumption accounts for over 25% of the global market. According to the Global Wealth and Lifestyle Report 2020,
Hong Kong Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a List of cities in China, city and Special administrative regions of China, special ...
,
Shanghai Shanghai (; , , Standard Chinese, Standard Mandarin pronunciation: ) is one of the four Direct-administered municipalities of China, direct-administered municipalities of the China, People's Republic of China (PRC). The city is located on the ...
,
Tokyo Tokyo (; ja, 東京, , ), officially the Tokyo Metropolis ( ja, 東京都, label=none, ), is the capital and largest city of Japan. Formerly known as Edo, its metropolitan area () is the most populous in the world, with an estimated 37.46 ...
and
Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...
were four of the five most expensive cities for luxury goods in Asia. In 2014, the luxury sector was expected to grow over the following 10 years because of 440 million consumers spending a total of 880 billion euros, or $1.2 trillion.


Advertising

The advertising expenditure for the average luxury brand is 5-15% of sales
revenue In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business. Commercial revenue may also be referred to as sales or as turnover. Some companies receive rev ...
, or about 25% with the inclusion of other communications such as
public relations Public relations (PR) is the practice of managing and disseminating information from an individual or an organization (such as a business, government agency, or a nonprofit organization) to the public in order to influence their perception. ...
, events and sponsorships. A rather small group in comparison, the wealthy tend to be extremely influential. Once a brand gets an "endorsement" from members of this group, then the brand can be defined as a true "luxury" brand. An example of different product lines in the same brand is found in the automotive industry, with "entry-level" cars marketed to younger, less wealthy consumers, and higher-cost models for older and more wealthy consumers.


Economics

In Economics, superior goods or luxury goods make up a larger ''proportion'' of consumption as income rises, and therefore are a type of normal goods in
consumer theory The theory of consumer choice is the branch of microeconomics that relates preferences to consumption expenditures and to consumer demand curves. It analyzes how consumers maximize the desirability of their consumption as measured by their pref ...
. Such a good must possess two economic characteristics: it must be
scarce In economics, scarcity "refers to the basic fact of life that there exists only a finite amount of human and nonhuman resources which the best technical knowledge is capable of using to produce only limited maximum amounts of each economic good ...
, and, along with that, it must have a high price.Shellfish Economics
A course outline for the FAO of the United Nations; ''Fisheries and Aquaculture Department.'' Retrieved April 18, 2008.
The scarcity of the good can be natural or artificial; however, the general population (i.e.,
consumer A consumer is a person or a group who intends to order, or uses purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. ...
s) must recognize the good as distinguishably ''better''. Possession of such a good usually signifies " superiority" in resources, and usually is accompanied by prestige. A Veblen good is a superior good with a prestige value so high that a price decline might ''lower'' demand. The income elasticity of a superior good is above one by definition, because it raises the expenditure share as income rises. A superior good also may be a luxury good that is not purchased at all below a certain level of income. Examples would include smoked salmon, caviar, and most other delicacies. On the other hand, superior goods may have a wide quality distribution, such as
wine Wine is an alcoholic drink typically made from Fermentation in winemaking, fermented grapes. Yeast in winemaking, Yeast consumes the sugar in the grapes and converts it to ethanol and carbon dioxide, releasing heat in the process. Different ...
and
holiday A holiday is a day set aside by custom or by law on which normal activities, especially business or work including school, are suspended or reduced. Generally, holidays are intended to allow individuals to celebrate or commemorate an event or t ...
s. However, though the ''number'' of such goods consumed may stay constant even with rising wealth, the level of spending will go up, to secure a better experience.


Socioeconomic significance

Several manufactured products attain the status of "luxury goods" due to their design, quality, durability, or performance that are remarkably superior to the comparable substitutes. There are also goods that are perceived as luxurious by the public, simply because they play a role of
status symbol A status symbol is a visible, external symbol of one's social position, an indicator of economic or social status. Many luxury goods are often considered status symbols. ''Status symbol'' is also a sociological term – as part of social and soc ...
s, as such goods tend to signify the purchasing power of those who acquire them. These items, while not necessarily being better (in quality, performance, or appearance) than their less expensive substitutes, are purchased with the main purpose of displaying
wealth Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating Old English word , which is from an I ...
or income of their owners. These kinds of goods are the objects of a socio-economic phenomenon called ''
conspicuous consumption In sociology and in economics, the term conspicuous consumption describes and explains the consumer practice of buying and using goods of a higher quality, price, or in greater quantity than practical. In 1899, the sociologist Thorstein Veblen c ...
'' and commonly include luxury vehicles,
watch A watch is a portable timepiece intended to be carried or worn by a person. It is designed to keep a consistent movement despite the motions caused by the person's activities. A wristwatch is designed to be worn around the wrist, attached ...
es,
jewelry Jewellery ( UK) or jewelry ( U.S.) consists of decorative items worn for personal adornment, such as brooches, rings, necklaces, earrings, pendants, bracelets, and cufflinks. Jewellery may be attached to the body or the clothes. From a w ...
, designer clothing,
yacht A yacht is a sailing or power vessel used for pleasure, cruising, or racing. There is no standard definition, though the term generally applies to vessels with a cabin intended for overnight use. To be termed a , as opposed to a , such a pleasu ...
s, private jets, corporate helicopters as well as large residences, urban
mansion A mansion is a large dwelling house. The word itself derives through Old French from the Latin word ''mansio'' "dwelling", an abstract noun derived from the verb ''manere'' "to dwell". The English word '' manse'' originally defined a property l ...
s, and country houses.


Luxury brands

The idea of a luxury
brand A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create an ...
is not necessarily a product or a price point, but a mindset where core values that are expressed by a brand are directly connected to the producer's dedication and alignment to perceptions of quality with its customers' values and aspirations. Thus, it is these target customers, not the product, that make a luxury brand. Brands that are considered luxury connect with their customers by communicating that they are at the top of their class or considered the best in their field. Furthermore, these brands must deliver - in some meaningful way - measurably better performance. What consumers perceive as luxurious brands and products change over the years, but there appear to be three main drivers: (1) a high price, especially when compared to other brands within its segment; (2) limited supply, in that a brand may not need to be expensive, but it arguably should not be easily obtainable and contributing to the customers' feeling that they have something special; and (3) endorsement by celebrities, which can make a brand or particular products more appealing for consumers and thus more "luxurious" in their minds. Two additional elements of luxury brands include special packaging and personalization. These differentiating elements distance the brands from the mass market and thus provide them with a unique feeling and user experience as well as a special and memorable "luxury feel" for customers. However, the concept of a luxury brand is now so popular that it is used in almost every retail, manufacturing, and service sector. Moreover, new marketing concepts such as "mass-luxury" or "hyper luxury" further blur the definition of what is a luxury product, a luxury brand, or a luxury company. Examples include
LVMH LVMH Moët Hennessy Louis Vuitton (), commonly known as LVMH, is a French holding multinational corporation and conglomerate specializing in luxury goods, headquartered in Paris. The company was formed in 1987 through the merger of fashion house ...
, the largest luxury good producer in the world with over fifty brands (including
Louis Vuitton Louis Vuitton Malletier, commonly known as Louis Vuitton (, ), is a French high-end Luxury goods, luxury fashion house and company founded in 1854 by Louis Vuitton (designer), Louis Vuitton. The label's LV monogram appears on most of its produc ...
) and sales of €42.6 billion in 2017, Kering, which made €15.9 billion in revenue for a net income of €2.3 billion in 2019, and Richemont.


Luxury department stores

Since the development of mass-market "luxury" brands in the 1800s. Extraordinary places will be the factor of development which can be achieved by enabling the conversion of items from the mass-market to the luxury market. Many innovative technologies are being added to mass-market products and then transformed into luxury items to be placed in department stores. Department stores dedicated to selling all major luxury brands have opened up in most major cities around the world.
Le Bon Marché Le Bon Marché (lit. "the good market", or "the good deal" in French; ) is a department store in Paris. Founded in 1838 and revamped almost completely by Aristide Boucicaut in 1852, it was one of the first modern department stores. It was ...
in
Paris Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. Si ...
,
France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
is credited as one of the first of its kind. In the United States, the development of luxury-oriented department stores not only changed the retail industry, but also ushered the idea of freedom through consumerism, and a new opportunity for middle- and upper-class women.


Luxury shopping districts

Fashion brands within the luxury goods market tend to be concentrated in exclusive or affluent districts of cities around the world. These include: *
Amsterdam Amsterdam ( , , , lit. ''The Dam on the River Amstel'') is the capital and most populous city of the Netherlands, with The Hague being the seat of government. It has a population of 907,976 within the city proper, 1,558,755 in the urban ar ...
's
P.C. Hooftstraat The P.C. Hooftstraat is a shopping street in Amsterdam, Netherlands. In 1876 it was named after Pieter Corneliszoon Hooft (1581–1647), a Dutch historian, poet and playwright. The street is located in the ''stadsdeel'' Amsterdam Oud-Zuid and ...
*
Athens Athens ( ; el, Αθήνα, Athína ; grc, Ἀθῆναι, Athênai (pl.) ) is both the capital and largest city of Greece. With a population close to four million, it is also the seventh largest city in the European Union. Athens dominates a ...
' Voukourestiou Street and Kolonaki district *
Bangalore Bangalore (), officially Bengaluru (), is the capital and largest city of the Indian state of Karnataka. It has a population of more than and a metropolitan population of around , making it the third most populous city and fifth most ...
's
UB City UB City is a luxury business district in Bengaluru, India. It consists of 6 blocks, UB Tower, Kingfisher Plaza, Concorde, Canberra, Comet, and Kingfisher Towers, with a total built up area of over 16 lakh sq ft. Pioneered by the UB Group in Joi ...
*
Barcelona Barcelona ( , , ) is a city on the coast of northeastern Spain. It is the capital and largest city of the autonomous community of Catalonia, as well as the second most populous municipality of Spain. With a population of 1.6 million within c ...
's Passeig de Gràcia *
Beijing } Beijing ( ; ; ), Chinese postal romanization, alternatively romanized as Peking ( ), is the Capital city, capital of the China, People's Republic of China. It is the center of power and development of the country. Beijing is the world's Li ...
’s Yabaolu *
Berlin Berlin ( , ) is the capital and largest city of Germany by both area and population. Its 3.7 million inhabitants make it the European Union's most populous city, according to population within city limits. One of Germany's sixteen constitu ...
's Kurfürstendamm *
Bogotá Bogotá (, also , , ), officially Bogotá, Distrito Capital, abbreviated Bogotá, D.C., and formerly known as Santa Fe de Bogotá (; ) during the Spanish period and between 1991 and 2000, is the capital city of Colombia, and one of the larges ...
's Zona T *
Boston Boston (), officially the City of Boston, is the state capital and most populous city of the Commonwealth of Massachusetts, as well as the cultural and financial center of the New England region of the United States. It is the 24th- mo ...
's
Newbury Street Newbury Street is located in the Back Bay area of Boston, Massachusetts, in the United States. It runs roughly east–west, from the Boston Public Garden to Brookline Avenue. The road crosses many major arteries along its path, with an entra ...
*
Brussels Brussels (french: Bruxelles or ; nl, Brussel ), officially the Brussels-Capital Region (All text and all but one graphic show the English name as Brussels-Capital Region.) (french: link=no, Région de Bruxelles-Capitale; nl, link=no, Bruss ...
' Louizalaan/
Avenue Louise The () or (Dutch) is a major thoroughfare in Brussels, Belgium. It is located in the southern part of the City of Brussels, on the border with the municipality of Ixelles, where it runs south–east from the to the Bois de la Cambre/Ter Kam ...
*
Buenos Aires Buenos Aires ( or ; ), officially the Autonomous City of Buenos Aires ( es, link=no, Ciudad Autónoma de Buenos Aires), is the capital and primate city of Argentina. The city is located on the western shore of the Río de la Plata, on South ...
' Recoleta * Cartagena's
Bocagrande Bocagrande is a neighbourhood in the city of Cartagena de Indias in Bolívar, Colombia. It was designed with first-world standards, such as residential areas of restricted access, and a separate plant for processing waste water. Economy and c ...
*
Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = List of sovereign states, Count ...
's Oak Street *
Düsseldorf Düsseldorf ( , , ; often in English sources; Low Franconian and Ripuarian: ''Düsseldörp'' ; archaic nl, Dusseldorp ) is the capital city of North Rhine-Westphalia, the most populous state of Germany. It is the second-largest city in ...
's Königsallee *
Florence Florence ( ; it, Firenze ) is a city in Central Italy and the capital city of the Tuscany region. It is the most populated city in Tuscany, with 383,083 inhabitants in 2016, and over 1,520,000 in its metropolitan area.Bilancio demografico ...
's Via de' Tornabuoni *
Frankfurt Frankfurt, officially Frankfurt am Main (; Hessian: , " Frank ford on the Main"), is the most populous city in the German state of Hesse. Its 791,000 inhabitants as of 2022 make it the fifth-most populous city in Germany. Located on it ...
's Freßgass *
Hamburg Hamburg (, ; nds, label=Hamburg German, Low Saxon, Hamborg ), officially the Free and Hanseatic City of Hamburg (german: Freie und Hansestadt Hamburg; nds, label=Low Saxon, Friee un Hansestadt Hamborg),. is the List of cities in Germany by popul ...
's
Neuer Wall Neuer Wall () is an upmarket shopping street in Hamburg, Germany. The 1,200 m of shop-fronts are almost entirely lined with luxury brands. According to international real estate and retail reports, Neuer Wall is among the most exclusive shopping ...
*
Hong Kong Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a List of cities in China, city and Special administrative regions of China, special ...
's
Central Central is an adjective usually referring to being in the center of some place or (mathematical) object. Central may also refer to: Directions and generalised locations * Central Africa, a region in the centre of Africa continent, also known a ...
,
Tsim Sha Tsui Tsim Sha Tsui, often abbreviated as TST, is an urban area in southern Kowloon, Hong Kong. The area is administratively part of the Yau Tsim Mong District. Tsim Sha Tsui East is a piece of land reclaimed from the Hung Hom Bay now east of Tsi ...
*
Istanbul ) , postal_code_type = Postal code , postal_code = 34000 to 34990 , area_code = +90 212 (European side) +90 216 (Asian side) , registration_plate = 34 , blank_name_sec2 = GeoTLD , blank_i ...
's
Abdi İpekçi Street Abdi İpekçi Street or Abdi İpekçi Avenue ( tr, Abdi İpekçi Caddesi) is one of the premier shopping streets of İstanbul, Turkey, located in the Şişli district. It runs along the Maçka and Teşvikiye neighborhoods, extending from Bayıl ...
and İstinye Park *
Jakarta Jakarta (; , bew, Jakarte), officially the Special Capital Region of Jakarta ( id, Daerah Khusus Ibukota Jakarta) is the capital city, capital and list of Indonesian cities by population, largest city of Indonesia. Lying on the northwest coa ...
's Menteng and
Kebayoran Baru Kebayoran Baru is a district ( id, kecamatan) of South Jakarta, Indonesia. The name of the district was derived from an area which was developed in the post-war period as a new suburb town of Jakarta, Kebayoran Baru. Kebayoran Baru was the last r ...
*
Johannesburg Johannesburg ( , , ; Zulu language, Zulu and xh, eGoli ), colloquially known as Jozi, Joburg, or "The City of Gold", is the largest city in South Africa, classified as a Megacity#List of megacities, megacity, and is List of urban areas by p ...
's Sandton (
Nelson Mandela Square Nelson Mandela Square is a shopping centre in Sandton, Johannesburg, South Africa, that includes a large open area built to resemble a traditional European town square, and an office complex. The centre was formerly known as Sandton Square and ...
) *
Kuala Lumpur , anthem = ''Maju dan Sejahtera'' , image_map = , map_caption = , pushpin_map = Malaysia#Southeast Asia#Asia , pushpin_map_caption = , coordinates = , sub ...
's
Bukit Bintang Bukit Bintang (; stylised as Bintang Walk or Starhill, the latter being a translation of the Malay name) is the shopping and entertainment district of Kuala Lumpur, Malaysia. It encompasses Jalan Bukit Bintang (''Bukit Bintang Road'' in Engli ...
and KLCC *
Las Vegas Las Vegas (; Spanish for "The Meadows"), often known simply as Vegas, is the 25th-most populous city in the United States, the most populous city in the state of Nevada, and the county seat of Clark County. The city anchors the Las Veg ...
's Strip ( Bellagio, Crystals,
Forum Shops The Forum Shops at Caesars, also known as The Forum Shops, is an upscale shopping mall on the Las Vegas Strip in Paradise, Nevada. It is connected to the Caesars Palace resort, and both feature a Roman theme. The mall project was announced in 1987 ...
, The Venetian) *
Leeds Leeds () is a city and the administrative centre of the City of Leeds district in West Yorkshire, England. It is built around the River Aire and is in the eastern foothills of the Pennines. It is also the third-largest settlement (by popul ...
' Victoria Quarter *
Lisbon Lisbon (; pt, Lisboa ) is the capital and largest city of Portugal, with an estimated population of 544,851 within its administrative limits in an area of 100.05 km2. Lisbon's urban area extends beyond the city's administrative limits w ...
's
Avenida da Liberdade Avenida da Liberdade (Portuguese for ''"Avenue of Liberty"'') is a boulevard in central Lisbon, Portugal, known for being one of the most expensive shopping streets in Europe. Originating in the '' Passeio Público'', an 18th-century park buil ...
*
London London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
's
Bond Street Bond Street in the West End of London links Piccadilly in the south to Oxford Street in the north. Since the 18th century the street has housed many prestigious and upmarket fashion retailers. The southern section is Old Bond Street and the ...
and Sloane Street *
Los Angeles Los Angeles ( ; es, Los Ángeles, link=no , ), often referred to by its initials L.A., is the largest city in the state of California and the second most populous city in the United States after New York City, as well as one of the world ...
'
Beverly Hills Beverly Hills is a city located in Los Angeles County, California. A notable and historic suburb of Greater Los Angeles, it is in a wealthy area immediately southwest of the Hollywood Hills, approximately northwest of downtown Los Angeles. ...
(
Rodeo Drive Rodeo Drive is a street in Beverly Hills, California, with its southern segment in the City of Los Angeles. Its southern terminus is at Beverwil Drive, and its northern terminus is at its intersection with Sunset Boulevard in Beverly Hills. Th ...
) *
Madrid Madrid ( , ) is the capital and most populous city of Spain. The city has almost 3.4 million inhabitants and a metropolitan area population of approximately 6.7 million. It is the second-largest city in the European Union (EU), and ...
's Calle de Serrano *
Manila Manila ( , ; fil, Maynila, ), officially the City of Manila ( fil, Lungsod ng Maynila, ), is the capital of the Philippines, and its second-most populous city. It is highly urbanized and, as of 2019, was the world's most densely populated ...
's
Ayala Avenue Ayala Avenue is a major thoroughfare in Makati, Philippines. It is one of the busiest roads in Metro Manila, crossing through the heart of the Makati Central Business District. Because of the many businesses located along the avenue, Ayala Avenu ...
*
Medellín Medellín ( or ), officially the Municipality of Medellín ( es, Municipio de Medellín), is the second-largest city in Colombia, after Bogotá, and the capital of the department of Antioquia. It is located in the Aburrá Valley, a central re ...
's
El Poblado El Poblado is the 14th commune in the metropolitan area of the city of Medellín, Colombia. According to a 2005 census the population was 94,704, distributed among its land area of 23 km2, and by the year 2015, it had a population of 128,8 ...
*
Melbourne Melbourne ( ; Boonwurrung/ Woiwurrung: ''Narrm'' or ''Naarm'') is the capital and most populous city of the Australian state of Victoria, and the second-most populous city in both Australia and Oceania. Its name generally refers to a metro ...
's Collins Street * Montería's Passage of the Sun *
Montreal Montreal ( ; officially Montréal, ) is the second-most populous city in Canada and most populous city in the Canadian province of Quebec. Founded in 1642 as '' Ville-Marie'', or "City of Mary", it is named after Mount Royal, the triple- ...
's Rue Sainte-Catherine *
Mexico City Mexico City ( es, link=no, Ciudad de México, ; abbr.: CDMX; Nahuatl: ''Altepetl Mexico'') is the capital and largest city of Mexico, and the most populous city in North America. One of the world's alpha cities, it is located in the Valley o ...
's Avenida Presidente Masaryk *
Milan Milan ( , , Lombard: ; it, Milano ) is a city in northern Italy, capital of Lombardy, and the second-most populous city proper in Italy after Rome. The city proper has a population of about 1.4 million, while its metropolitan city ...
's Via Monte Napoleone *
Moscow Moscow ( , US chiefly ; rus, links=no, Москва, r=Moskva, p=mɐskˈva, a=Москва.ogg) is the capital and largest city of Russia. The city stands on the Moskva River in Central Russia, with a population estimated at 13.0 million ...
's Tverskaya Street and Stoleshnikov Lane *
Munich Munich ( ; german: München ; bar, Minga ) is the capital and most populous city of the German state of Bavaria. With a population of 1,558,395 inhabitants as of 31 July 2020, it is the third-largest city in Germany, after Berlin and ...
's Maximilianstraße * New York's
Madison Avenue Madison Avenue is a north-south avenue in the borough of Manhattan in New York City, United States, that carries northbound one-way traffic. It runs from Madison Square (at 23rd Street) to meet the southbound Harlem River Drive at 142nd Str ...
,
Fifth Avenue Fifth Avenue is a major and prominent thoroughfare in the borough of Manhattan in New York City. It stretches north from Washington Square Park in Greenwich Village to West 143rd Street in Harlem. It is one of the most expensive shopping ...
and
SoHo Soho is an area of the City of Westminster, part of the West End of London. Originally a fashionable district for the aristocracy, it has been one of the main entertainment districts in the capital since the 19th century. The area was deve ...
*
Paris Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. Si ...
' Champs-Élysées, Avenue Montaigne and Rue du Faubourg Saint-Honoré * Palm Beach's
Worth Avenue Worth Avenue is an upscale shopping and dining district in Palm Beach, Florida. The Avenue stretches four blocks from Lake Worth to the Atlantic Ocean. Worth Avenue also includes smaller, architecturally significant "vias" off the main avenue. ...
*
Panama City Panama City ( es, Ciudad de Panamá, links=no; ), also known as Panama (or Panamá in Spanish), is the capital and largest city of Panama. It has an urban population of 880,691, with over 1.5 million in its metropolitan area. The city is loca ...
's Multiplaza Pacific *
Philadelphia Philadelphia, often called Philly, is the largest city in the Commonwealth of Pennsylvania, the sixth-largest city in the U.S., the second-largest city in both the Northeast megalopolis and Mid-Atlantic regions after New York City. Since ...
's Walnut Street *
Prague Prague ( ; cs, Praha ; german: Prag, ; la, Praga) is the capital and largest city in the Czech Republic, and the historical capital of Bohemia. On the Vltava river, Prague is home to about 1.3 million people. The city has a temperate ...
's Pařížská *
Rome , established_title = Founded , established_date = 753 BC , founder = King Romulus ( legendary) , image_map = Map of comune of Rome (metropolitan city of Capital Rome, region Lazio, Italy).svg , map_caption ...
's Via Condotti *
San Francisco San Francisco (; Spanish for " Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the fourth most populous in California and 17t ...
's Union Square * San Jose’s
Santana Row Santana Row (abbreviated as SR or The Row) is a residential and commercial district of West San Jose in San Jose, California. Santana Row is intersected by Stevens Creek Boulevard, a major thoroughfare, and close to local landmarks like Westfield ...
*
Santiago Santiago (, ; ), also known as Santiago de Chile, is the capital and largest city of Chile as well as one of the largest cities in the Americas. It is the center of Chile's most densely populated region, the Santiago Metropolitan Region, whos ...
's Alonso de Cordoba *
São Paulo São Paulo (, ; Portuguese for ' Saint Paul') is the most populous city in Brazil, and is the capital of the state of São Paulo, the most populous and wealthiest Brazilian state, located in the country's Southeast Region. Listed by the GaW ...
's Rua Oscar Freire *
Seoul Seoul (; ; ), officially known as the Seoul Special City, is the Capital city, capital and largest metropolis of South Korea.Before 1972, Seoul was the ''de jure'' capital of the North Korea, Democratic People's Republic of Korea (North Korea ...
's
Cheongdam-dong Cheongdam-dong () is a ward of Gangnam District in Seoul, South Korea. The area is best known in South Korea as an affluent neighborhood populated by a disproportionately high number of high-income individuals and for having some of the most expe ...
*
Shanghai Shanghai (; , , Standard Chinese, Standard Mandarin pronunciation: ) is one of the four Direct-administered municipalities of China, direct-administered municipalities of the China, People's Republic of China (PRC). The city is located on the ...
's Middle Huaihai Road *
Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...
's
Orchard Road Orchard Road, often known colloquially as simply Orchard, is a major –long road in the Central Area of Singapore. Known as a famous tourist attraction, it is an upscale shopping area of Singapore, with numerous internationally renowned depa ...
*
Stockholm Stockholm () is the capital and largest city of Sweden as well as the largest urban area in Scandinavia. Approximately 980,000 people live in the municipality, with 1.6 million in the urban area, and 2.4 million in the metropo ...
's Biblioteksgatan *
Sydney Sydney ( ) is the capital city of the state of New South Wales, and the most populous city in both Australia and Oceania. Located on Australia's east coast, the metropolis surrounds Sydney Harbour and extends about towards the Blue Mounta ...
's Castlereagh Street *
Taipei Taipei (), officially Taipei City, is the capital and a special municipality of the Republic of China (Taiwan). Located in Northern Taiwan, Taipei City is an enclave of the municipality of New Taipei City that sits about southwest of the ...
's Xinyi District *
Tel Aviv Tel Aviv-Yafo ( he, תֵּל־אָבִיב-יָפוֹ, translit=Tēl-ʾĀvīv-Yāfō ; ar, تَلّ أَبِيب – يَافَا, translit=Tall ʾAbīb-Yāfā, links=no), often referred to as just Tel Aviv, is the most populous city in the G ...
's
Kikar Hamedina Kikar HaMedina (English: "Square of The State") is the largest plaza in Tel Aviv. Around the plaza, which was designed by architect Oscar Niemeyer (in cooperation with Israeli architects who planned for the existing residential buildings), there i ...
*
Tokyo Tokyo (; ja, 東京, , ), officially the Tokyo Metropolis ( ja, 東京都, label=none, ), is the capital and largest city of Japan. Formerly known as Edo, its metropolitan area () is the most populous in the world, with an estimated 37.46 ...
's
Ginza Ginza ( ; ja, 銀座 ) is a district of Chūō, Tokyo, located south of Yaesu and Kyōbashi, west of Tsukiji, east of Yūrakuchō and Uchisaiwaichō, and north of Shinbashi. It is a popular upscale shopping area of Tokyo, with numerous i ...
and Aoyama *
Toronto Toronto ( ; or ) is the capital city of the Canadian province of Ontario. With a recorded population of 2,794,356 in 2021, it is the most populous city in Canada and the fourth most populous city in North America. The city is the anch ...
's
Mink Mile Mink Mile is an upscale shopping district in the neighbourhood of Yorkville in Toronto, Ontario, Canada, along Bloor Street between Yonge Street and Avenue Road. History In the 21st century, mid-market retailers have begun to locate along th ...
*
Vancouver Vancouver ( ) is a major city in western Canada, located in the Lower Mainland region of British Columbia. As the most populous city in the province, the 2021 Canadian census recorded 662,248 people in the city, up from 631,486 in 2016. ...
's Alberni Street *
Warsaw Warsaw ( pl, Warszawa, ), officially the Capital City of Warsaw,, abbreviation: ''m.st. Warszawa'' is the capital and largest city of Poland. The metropolis stands on the River Vistula in east-central Poland, and its population is officiall ...
's Nowy Świat Street *
Zürich , neighboring_municipalities = Adliswil, Dübendorf, Fällanden, Kilchberg, Maur, Oberengstringen, Opfikon, Regensdorf, Rümlang, Schlieren, Stallikon, Uitikon, Urdorf, Wallisellen, Zollikon , twintowns = Kunming, San Francisco Z ...
's
Bahnhofstrasse Bahnhofstrasse is Zürich's main downtown street and one of the world's most expensive and exclusive shopping avenues. In 2011, a study named the ''Bahnhofstrasse'' the most expensive street for retail property in Europe, and the third most expen ...


See also

*
Behavioral economics Behavioral economics studies the effects of psychological, cognitive, emotional, cultural and social factors on the decisions of individuals or institutions, such as how those decisions vary from those implied by classical economic theory. ...
*
Collecting The hobby of collecting includes seeking, locating, acquiring, organizing, cataloging, displaying, storing, and maintaining items that are of interest to an individual ''collector''. Collections differ in a wide variety of respects, most obvi ...
* Commodity fetishism *
Conspicuous consumption In sociology and in economics, the term conspicuous consumption describes and explains the consumer practice of buying and using goods of a higher quality, price, or in greater quantity than practical. In 1899, the sociologist Thorstein Veblen c ...
* Designer label * Inferior good * Mid-luxury *
Necessity good In economics, a necessity good or a necessary good is a type of normal good. Necessity goods are product(s) and services that consumers will buy regardless of the changes in their income levels, therefore making these products less sensitive to in ...
* Positional good *
Sumptuary law Sumptuary laws (from Latin ''sūmptuāriae lēgēs'') are laws that try to regulate consumption. ''Black's Law Dictionary'' defines them as "Laws made for the purpose of restraining luxury or extravagance, particularly against inordinate expendi ...
* Veblen goods * Wealth effect *
Money Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money ar ...
* List of most expensive and valuable assets *
Lists of most expensive items by category An index of lists of most expensive things. Accessories *List of most expensive watches sold at auction Transport * List of world's most expensive transport infrastructure * List of most expensive cars sold in auction Media *List of most expen ...


References


Further reading

* * Heine, Klaus: (2011)
The Concept of Luxury Brands
'' Luxury Brand Management, No. 1, * Wiesing, Lambert: ''A philosophy of Luxury.'' London, New York: Routledge 2019.


External links



from the
University of Michigan , mottoeng = "Arts, Knowledge, Truth" , former_names = Catholepistemiad, or University of Michigania (1817–1821) , budget = $10.3 billion (2021) , endowment = $17 billion (2021)As o ...

Definition of "superior good" as a "normal good" synonym
from California State University {{DEFAULTSORT:Luxury Good Goods (economics) Brand management Retailing by products and services sold de:Luxus sl:Luksuz