In-Depth Analysis On The Concept Of Democratization Of Luxury

Question

Task: Please read the following questions carefully. Choose one question to answer, and in your essay make sure you use one example or case as evidence to support your argument.

1. What does ‘luxury’ mean, and what is the ‘democratization of luxury’?
2. What role has imitation played in the development of design?
3. Are some forms of mass-consumption ‘compulsory?’ Why?
4. Why do we seem to need so many things? To what extent, and how, can possessions ‘extend’ the
self?
5. How can marketing and advertising make us feel we ‘lack’ something?
6. What is ‘time scarcity’, and how does this seem to both increase, and be increased by, consumerism?
7. What role, negative or positive, does the media have in shaping our attitudes towards ‘nature’?
8. How can our values and goals shape our behaviour in consumption? Can these be changed?
9. What leverage points can we find to change larger urban systems towards greater sustainability?
10. What is meant by the Circular Economy? Can today’s ‘linear economy’ of ‘make, use and waste’ be
modified through changes in consumption, or only through changes in systems of production?

Answer

The present essay is all about discussing the concept of democratization of luxury. Luxury is defined as the state of maintaining a very lavish and elegant lifestyle, which involves great expenditure. Almost every individual prefers luxury however, not everyone possesses the ability to afford the luxury. Luxury involves buying luxury cars or wearing branded clothes, but it also involves maintaining a very standard lifestyle. Moreover, luxury is related to democracy, which means that luxury is connected with the political affairs of the country. The aim of the essay is to present the meaning of luxury before the readers in detail, the ways by which luxury is related to democracy along with the detailed meaning of 'democratization of luxury'.

The word 'luxury' has been derived from the Latin word 'Lexus', which means 'disruption of the tariffs and taxes' and ' the act of urging sensual pleasure within an individual'. From the inception, the word 'luxury' has been stated as something which can bring delight and happiness in the life of an individual. However, it has been perceived differently by different people's points of view. The Cambridge Dictionary defines luxury as something which is expensive enough and can give pleasure but is not necessary for the living of an individual (Atwal and Williams, 2017). 

Luxury in simple terms can be described as the act of maintaining a very gorgeous lifestyle; however, there is a deeper meaning of the term. The term 'luxury' also defines the transformation of an object into a piece of art, moreover luxury also defines the way to present a person through the use of fashion accessories and thus it can be said as the rank or power of an individual. It also defines the tradition or the quality of a product through the ages. Luxury tends to provide comfort to our lives and therefore it provides pleasure and helps an individual to maintain standards in society (Shukla et al. 2016).

 The term ‘luxury’ is often used in daily life; it focuses on maintaining the standard lifestyle of an individual. However, luxury is defined in the following three aspects including psychological or sociological, marketing and economic aspect. At first, luxury is defined as something, which is costly and not at all necessary for living. In terms of economy, luxury is something, which cannot be afforded by everyone, as it requires a huge amount of expenditures. According to psychology, luxury is addressed as something, which is used by people to maintain their standard or to create a positive impression and for the personal satisfaction of an individual. According to the marketing aspect, luxury is something, which brings a lot of profit in the market as the customers tend to buy a product in the name of the brand (Godey et al. 2016).

 There are six aspects of luxury, which are explained below.

Luxury, at the first instance, is stated as something possessing a standard quality. A luxury product is generally expected as something, which has a very standard quality. It also consists of unique and standard components and ingredients. High price can be said as the second most important quality of a luxury product and along with that, some other qualities of a luxury product are defined as a luxury product. It consists of a standard work of art and also it is considered useless by some people as the luxury products are not at all necessary for living, however, the products are for use by elite classes of society only (Yang and Mattila, 2017).

The concept of luxury in “democratization of luxury” also differs across many cultures; the Italians describe luxury as something exclusive. For the French, luxury is a matter of prestige and is regarded as a matter of elite classes of society. Germans looked to the concept of luxury as something, which is expensive and prestigious concerning society. According to Americans, luxury is something that is not only exclusive or prestigious but also the products are to be durable and extravagant. Taking a look at the above aspects of democratization of luxury, it can be said that the luxury and luxurious good is something which comprises all qualities starting from durable and extravagant goods to that of prestigious and exclusive. Therefore, luxury is something, which not only fulfills the pleasures of an individual but also is regarded as the rank or standard of people. Other than that, the luxurious product is one, which can only be afforded by people from the elite class of society. It is also regarded as branded products that fascinate the buyers to buy the product who are brand freaks (Amaral and Loken, 2016).

Luxury products depend on the section of society, for some people buying a car or affording designer clothes can be described as luxury. Moreover, in a certain section of the society, designer garments and even installing AC is a matter of luxury. Consumers easily get attracted to luxury as celebrities wearing high branded clothes fascinate them is considered luxurious. At present, the luxury industry is huge comprises with varieties of cosmetics, jewelers, fragrances, leather products and shoes (Conejo and Cunningham, 2016).

Luxury customers generally comprise of the elite sections of the society. However, the exact amount of people comprising the elite section of the society is very difficult to determine. It is because the market structure and the income of the people tend to vary and as a result, it becomes very difficult to identify one category for all. Depending on the group of consumers, it can be ensured that there are two main groups of luxury goods consumers. The first section refers to the section of the rich and affluent section while the second group consists of consumers trying to fit into the group. Therefore, the numbers of consumers of luxury goods are of two types mainly. In recent years, the tastes and preferences of the consumers are changing and as a result, the natures of goods are changing. The needs and demands of the consumers are developing and as per the nature of the goods are changing from conventional to modern methods. However, age also plays a major role in determining the choice and preferences of consumers. People belonging to the age group of the 23-36 years are fascinated a lot for luxury. It is because, it is the age of the adolescents who are fascinated a lot towards the fashion industry and as a result, they are the basic consumers of luxury brands in the market (Ko et al. 2017).

As it is the era of digitalization, therefore the young adults in this stage tend to focus on the online shopping sites to spend most of the time searching for the latest fashion trends prevailing in the present society. All of the above factors focus a lot in determining the fashion trends in the current scenario. Therefore, it determines the luxury brands that are afforded by various sections of society. The buyers of luxury products are therefore the young generation depending upon whom the luxury industry targets the customers and segments them. Therefore, people belonging to the above-specified age group can be said as the actual customers of luxury products. Therefore, the actual luxury products are specially used by the young adults' section of society. It has been observed that in recent years, the number of consumers of luxury products has increased largely, it is because the trends in fashion have been undergoing a lot of change. The fashion industry has been using a lot of luxurious garments and products and as a result, the young adults, as well as teenagers, have been increased to a significant level (Kim et al. 2018).

By seeing an increase in the demand for the products and garments, luxury brands and companies are focusing a lot to innovate new ideas to improve their stands and to manufacture and produce new products in the market. It will help the luxury brands to get more customers and in the process, many new ideas of innovation tend to cope up with the market. It will provide before the customers a wide range of products and in the process, it will help the luxury products and the business to improve their standard.

Democratization is referred to as the situation when something tends to get more famous than it used to be. It can be also defined as anything which is used to be inaccessible in the past but now it is accessible by many people. Therefore, in a nutshell, it can be said that democratization was very rare in the past but now it can be afforded by almost all the sections of the society. In reference to the concept of luxury as discussed earlier, a new form of luxury has evolved in recent times, which are termed as the democratization of luxury. The democratization of luxury is defined as something, which was affordable at present to only the elite class of the society, but at present, it is affordable by almost all the sections of the society. However, the democratization of luxury is the outcome of the two most important phenomena in the market.

The first phenomena deal with the fact that to compete in the market and to raise adequate capital, the luxury companies are making entries in the stock exchanges. By doing so, the pressure upon the investors tends to get low and as a result, the financial indicators tend to get improved a lot. By doing so, the companies tend to get a large number of customers and as a result, the business of the companies tends to improve at times (Shukla et al. 2015).

The second phenomena are to have a new customer by the luxury brands. At present, more people tend to buy luxury products from the market, as the customers are mainly young people. However, it has been observed that new customers are less reliable as compared to traditional customers. In recent times, it has been observed that teenagers are the main customers or buyers of luxury products (Amatulli et al.2018).

There are certain factors, which are responsible for democratization of luxury,

At first, the financial capacities of the households are likely to be increased and then the maintenance costs are required to be low enough. The social roles of women are undergoing a lot of changes and the family structures are also changing a lot. Moreover, the attitude towards life is also undergoing a lot of change and the education systems are developed.

The democratization of luxury is also affected by the creation and promotion of the sub-brands.

One of the most important factors of the democratization of luxury can be referred to as unprecedented access to the credits of the consumers. The practice also focuses on the discount which makes the consumer buy luxury products as afforded by them because of their income.

Therefore, the democratization of luxury can be defined as a new form of luxury in which the consumers do not think about the price of the product but are concerned with the product itself as they are fascinated by the brand image of the product. Therefore, it can be said that the democratization of luxury has brought a new concept in the field of luxury items and the process, has transformed the thinking style of the individual (Eom et al.2019). 

The economic theory of luxury goods builds up a connection between the luxury goods that are available in the market and their contributions to the economy of the country. The luxury goods are entirely different from the ordinary goods that are available in the market. Luxury goods are just the opposite of the necessary goods in the market. Therefore, the prices of luxury goods are higher as compared to any of the ordinary goods in the market. Luxury goods are often the highest quality of the products available in the market. The relativity of luxury goods is dependent on economic, regional, temporal, situational and cultural perspectives (Burri, 2017).

Certain characteristics of the luxury goods are they are of standard quality and can be referred to as a work of art. Moreover, the prices of the goods are high to such an extent that it is not always afforded by all sections of society. It is of exceptional quality consisting of unique features and as a result, it can attract many customers even though it is not affordable by all the consumers (Ramadan, 2019).

The democratization of luxury goods is that kind of good, which is afforded by the consumers as they care for the product and not for the price of the products in the market. Therefore, democratization contributes a lot to the economic development of the country and as a result, the economy of the country tends to get developed a lot. The democratization of luxury is the most crucial phenomena prevailing in the market at present. It has changed the mentality of the people by making them buy the products in the market irrespective of the cost of the products (Pla?yk, 2015). Therefore, the luxurious products at present are not only limited to the elite section of the society rather they are open now to all the sections of the society. In addition to it, the democratization of luxury goods helps to sell all the luxury goods in the market, which helps to improve the economic condition of the country. As luxury goods contribute a lot to the economy of a country, therefore, selling the products helps the economic scenario of the country to develop a lot (Ahmad, 2015). It can be described that the economic theory verifies the luxury goods contributes a lot to the economy of a country. Therefore, the democratization of luxury goods enables the customers to buy luxury goods irrespective of the age and income of the consumers, as a result, the sale of the luxury products tends to rise, and as a result, the economy of the country will be developed (Seo and Buchanan-Oliver, 2017). 

From the essay, it can be concluded that luxury goods are available in the market with very limited customers. It is because the products are meant for only the elite class of the society as it is a very costly product. Therefore, the luxury goods are made for the people depending upon their income. With the advent of democratization of luxury goods, the products are bought by the consumers irrespective of their income. It is because the consumers here focus more on the quality of the product rather than the price of the product. Thus, it helps to maintain the economic aspect of the country as luxury products contribute a lot to the economy of the country. The democratization of luxury goods helps to upgrade the mentality of the customers by making them hooked to the quality of the product and not on the income of the consumer. In this case, a theory has been described to emphasize the fact more clearly and efficiently.

Reference list:
Ahmad, N., 2015. Consumer Attitude towards Luxury: A Review on Luxury Value Perceptions. Democratization of luxury ???? & ????????????= Business & accounting review, (16), pp.69-83.Available at: https://kwansei-ac.jp/iba/journals/review/B%26A_dec15_p69-83.pdf

Amaral, N.B. and Loken, B., 2016. Viewing usage of counterfeit luxury goods: Social identity and social hierarchy effects on dilution and enhancement of genuine luxury brands. Journal of Consumer Psychology, 26(4), pp.483-495.Available at: http://www.academia.edu/download/44080467/1-s2.0-S1057740816000085-main.pdf

Amatulli, C., De Angelis, M., Korschun, D. and Romani, S., 2018. An Empirical Analysis of Consumers’ Perceptions of Luxury Brands’ CSR initiatives. ACR European Advances.Available ar: http://www.acrwebsite.org/volumes/v11e/eacr_v11_1700241.pdf

Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!. In Advances in luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.Available at: http://www.academia.edu/download/35343745/_Luxury_brand_marketing_-_The__experience_is_everything__.pdf

Burri, C., 2017. The democratization of luxury and its impact on the image of luxury brands (Doctoral dissertation, Haute école de gestion de Genève).Available at: http://doc.rero.ch/record/306003/files/TDIBM_Burri_Chrystelle.pdf

Conejo, F.J. and Cunningham, L.F., 2016. Current Issues in Luxury Brand Research. Journal of International Marketing Strategy, 4(1), pp.66-77.Available at: http://mtmi.us/jims/img/5%20Current%20Issues%20in%20Luxury%20Brand%20Research%20pg%2066%20to%20pg%2077.pdf

Eom, H.J., Seock, Y.K. and Hunt-Hurst, P., 2019. Purchase Intention toward Luxury Brands among Young Adult Consumers from Social Comparison Perspective. Democratization of luxury Journal of Marketing Management and Consumer Behavior, 2(4).Available at: https://journal-of-marketing-management-and-consumer-behavior.com/index.php/JMMCB/article/download/92/56

Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R. and Singh, R., 2016. Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior. Democratization of luxury Journal of business research, 69(12), pp.5833-5841.Available at: http://iranarze.ir/wp-content/uploads/2017/07/E4256-IranArze.pdf

Kim, J.C., Park, B. and Dubois, D., 2018. How Consumers’ Political Ideology and Status-Maintenance Goals Interact to Shape Their Desire for Luxury Goods. Journal of Marketing, 82(6), pp.132-149.Available at: https://www.depts.ttu.edu/rawlsbusiness/research/documents/HowConsumerPoliticalIdeology_and_Status-MaintenanceGoalsInteracttoShapeTheirDecisionforLuxuryGoods.pdf

Ko, E., Costello, J.P. and Taylor, C.R., 2017. What is a luxury brand? A new definition and review of the literature. Journal of Business Research.Available at: http://e-tarjome.com/storage/panel/fileuploads/2019-02-07/1549526746_E10571-e-tarjome.pdf

Pla?yk, K., 2015. The democratization of luxury–a new form of luxury. Studia University of Economics in Katowice, pp.158-165.Available at: http://www.academia.edu/download/37146950/Plazyk_Klaudia.pdf

Ramadan, Z., 2019. The democratization of intangible luxury. Marketing Intelligence & Planning.Available at: https://laur.lau.edu.lb:8443/xmlui/bitstream/handle/10725/11335/Post-print%20%28The%20democratization%29.pdf?sequence=2&isAllowed=y

Seo, Y. and Buchanan-Oliver, M., 2017. Constructing a typology of luxury brand consumption practices. Journal of Business Research.Available at: https://www.researchgate.net/profile/Yuri_Seo2/publication/319951180_Constructing_a_typology_of_luxury_brand_consumption_practices/links/59d264b0aca2721f4369aa7f/Constructing-a-typology-of-luxury-brand-consumption-practices.pdf

Shukla, P., Banerjee, M. and Singh, J., 2016. Customer commitment to luxury brands: Antecedents and consequences. Journal of Business Research, 69(1), pp.323-331. Democratization of luxury Available at: https://eprints.kingston.ac.uk/30389/1/Singh-J-30389.pdf

Shukla, P., Singh, J. and Banerjee, M., 2015. They are not all same: variations in Asian consumers’ value perceptions of luxury brands. Democratization of luxury Marketing Letters, 26(3), pp.265-278.Available at: https://eprints.kingston.ac.uk/30256/1/Singh-J-30256.pdf

Yang, W. and Mattila, A.S., 2017. The impact of status seeking on consumers’ word of mouth and product preference—A comparison between luxury hospitality services and luxury goods. Journal of Hospitality & Tourism Research, 41(1), pp.3-22.Available at: https://journals.sagepub.com/doi/pdf/10.1177/1096348013515920