Luxury Brands Keep the Economy Afloat

Even with the growing opinion that luxury brands do not offer much value and use for the majority of the public, there are actually studies showing that luxury brands provides a stable barrier to keep the economy afloat. Society benefits from luxury brands even if only the upper class can buy their products.

But the presence and growth of luxury brands are also keeping the counterfeit industry alive. This is why companies that provide superior products are receiving complaints such as L’Core Paris scam or Chanel’s counterfeit goods. However, in a way, this also assists in the thriving economy. The complicated industry of luxury brands paves the way into keeping the economy afloat during recession.

Kinds of Consumers

Compared to the consumers of normal or average products, the customers of luxury brands are not affected by any changes or hardships in the economy. Recession or economic hardships do not affect the primary consumers’ ability to buy luxury goods from brands like Chanel, L’Core Paris and Guerlain. There are even cases when the sales and the demand for luxury products increase during recession.

Economy Benefits from Luxury Goods

Opposite of what happens with normal goods, the market sales and demand for luxury products increases even the prices climb sharply. In the industry of luxury goods, an increase in price is often seen as a product of greater quality. With the growth of this industry, the economy manages to survive. On the other hand, during recession, the presence and business of luxury brands also assist in catching the economy – preventing its complete downfall.

While suppliers of normal products may suffer from the decrease in demand, they can still benefit from luxury brands. Suppliers are one of the most vital factors of a flourishing economy. They directly affect and they are also openly affected by the changes in the economy. A study shows that luxury goods help in keeping suppliers of materials and ingredients stay afloat and prevent the economy from completely plummeting.