According to research by consulting firm Bain & Co., the overall global market for luxury products and services hit $1.1 trillion in 2014—up about seven per cent from a year earlier. The demand for personal luxury goods, such as clothing, handbags and jewellery, has also grown, with an increase of five per cent to more than $300 billion globally.
This rise coincides with the recent “democratization of luxury” in Canada, which involves the widespread demand for high-quality, exceptional and lavish items.
Experts say that this increase in interest in luxury goods is due to our fascination as a society with celebrities, the growing wealth in emerging economies, and rising consumer expectations. Moreover, for Canadians, this growth has occurred largely due to the country’s booming housing market.
As a result, many brands have become involved in the “luxury lie,” which involves the selling of pricey, mass-produced products to consumers. These companies use the idea of luxury as a marketing tool, repackaging their old goods and services in a way that gives the illusion of finer quality. To put it simply: in today’s luxury business, it’s all about appearances. CJ
