Luxury in the USA: What does this Mean?

Today, what is considered a luxury in the US? To answer this question, let's first define what it is. The word "luxury" comes from the Latin word Luxus, which means extravagance of the senses, regardless of the price. The term "luxury goods" are often synonymous with superior goods. The United States is the largest regional market for luxury goods. Since the economy of the United States is the world's largest economy, people in the United States are more likely to indulge in luxury, fashion, business, career, and their homes, just to name a few.

THE LUXURY CUSTOMER 

In 2020, the luxury customer is someone who places a higher value on experiences as compared to possessions. They are always on the lookout for brands which represent a certain lifestyle. For an affluent customer, the experience is now more important than the price of the product and the product itself. The luxury customer makes more than a transactional purchase, it's an emotional experience. When a luxury customer spends money, they expect a premium and luxury experience.

Luxury goods are highly desired and are frequently purchased in order to:

EVOLUTION OF LUXURY

The luxury industry has gone through an evolution. An industry which was previously dominated by middle-aged wealthy buyers, is now seeing a group of younger clients postponing buying cars and homes. Instead, they like to splurge on limited edition shoes and designer clothes and custom accessories

Due to social media and its influence, younger customers are now directly communicating with brands. This enables them to interact with the brands so they cater to their personal preferences and personal requirements which are innate in their shopping experience. The Millennial state of mind is spreading throughout the luxury industry and modifying the purchasing habits of all ages.

CONSPICUOUS CONSUMPTION

Conspicuous consumption is defined as the practice of spending a greater percentage of your disposable income to buy goods and services that are usually not considered to be necessary.  It involves the purchase of goods that are exclusively designed to serve as symbols of wealth. Conspicuous consumption is expressed through product choices like designer clothes, luxury handbags, luxury jewelry, luxury fashion brands, luxury cars, and more. 

WHAT ARE TODAY'S CONSUMERS FEELING ABOUT PURCHASING LUXURY ITEMS?

From an emotional perspective, today's customers feel good after acquiring luxury goods. Purchasing luxury items raises their:

  • Social standing
  • Satisfaction
  • Confidence
  • Self-esteem

According to research, today's consumers are greatly attracted to luxury when they feel less powerful or less confident than their peers.

DOES LUXURY MEAN BETTER QUALITY?

People associate higher priced goods with better quality. However, for Millennial customers, luxury is synonymous with sustainability. Luxury products consist of the following six major characteristics:

  • Price
  • Quality
  • Aesthetics
  • Rarity
  • Extraordinariness
  • Symbolism 

ARE LUXURY PRODUCTS MADE IN FACTORIES TYPICALLY OR ARE THEY HANDMADE?

Most luxury products were handmade initially, by well-seasoned craftsmen. As the consumer needs grew, it became harder to find skilled craftsmen to fill the roles to meet market demands. As a result, large scale manufacturers like China were contracted for mass-production of items. So the majority of luxury products are produced on a mass scale under the quality control standard set forth by the brand. 

There are a few luxury brands that still produce handmade items with the understanding that customers will pay for the privilege. The consumers of luxury goods like luxury handbags, luxury gifts for men, luxury jewelry, luxury fashion brands, given a choice between handmade and off-the-shelf, would likely choose handmade.

HANDMADE CUSTOM JEWELRY AND PURSES: THE "NEW" LUXURY

Handmade custom jewelry is created for a specific wearer and it has more personality. Gifting a handmade piece of jewelry makes a better impression. Each handmade piece has a personal meaning to the wearer, and no one else will have anything like it when he/she walks into a room. Handmade custom jewelry and purses have uniqueness, as no two will be exactly the same and the personal nature of bespoke makes them so appealing.

HOW DO HANDMADE ITEMS BECOME A LUXURY? 

Locally produced items like jewelry and purses are often made-to-order and handcrafted by a craftsman. Since they are handmade individually, they are one of a kind luxury items. Buying handmade luxury jewelry and purses is like buying art and all true works of art are created by hand. They are highly sought-after, their details and materials strike a balance between tradition and new emerging trends.

Luxury goods, luxury fashion brands and luxury purses are an extension of the character of those who possess them. Handmade luxury jewelry and handbags are often produced by people who truly enjoy what they do. People purchasing these luxury goods will not only have the satisfaction of owning and carrying something special, but it also allows someone to continue creating what they love which helps our economy. 

Handmade jewelry and purses are best because the craftsmen care about the smallest details, unlike a machine that produces the same pieces over and over without a soul. Custom handbags have an unlimited capacity for design and they can fit your personality and lifestyle.

The following makes them so special:

  • Special Occassions - Handmade luxury jewelry and handbags make the best gifts and are ideal for any and all of your life's special occasions.
  • Customization - Mass-produced pieces lack depth and personality and this may not appeal to many people. Handmade luxury goods are precisely personalized and perfectly sized for your needs, right from the first cut, mold and color.     
  • Uniqueness - If you are looking for a customized and unique luxury item then handmade jewelry and purses are a perfect choice. They are one-of-a-kind and give the wearer the opportunity to stand out without trying.
  • Sustainability - There are no factory-made components used in handmade goods. The artisan uses his hands, safe and eco-friendly materials, and handheld tools to carve out every inch of these accessories. There is no fuel-powered equipment which promotes a cleaner greener planet.

So next time you are considering purchasing a high-quality accessory, look for handcrafted items. You will never be disappointed.


Sources:

https://www.thejacketmaker.com/custom-handbags

https://www.investopedia.com/terms/c/conspicuous-consumption.asp

https://www.quora.com/What-makes-handmade-handbags-valuable

https://www.craftmakerpro.com/business-tips/handmade-items-becoming-new-form-luxury/

https://www.wealthengine.com/luxury-product-marketing/

https://www.cxnetwork.com/cx-experience/articles/luxury-customer-experience

https://www.investopedia.com/terms/l/luxury-item.asp

 

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