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50 Examples of Luxury Goods

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Luxury goods are products, services and experiences that are available as high quality offerings at a far higher price than standard goods. The following are common examples of luxury goods followed by a detailed overview.
Activities such as horseback riding
Antiques
Apparel
Art
Artisan chocolates
Baby goods
Cakes, pastries & confections
Charter jets
Chauffeur services
Collectibles
Concierge services
Designer handbags
Event planning & catering
Event tickets
Exclusive restaurants
Eyewear
Fashion accessories
Fine dinnerware
Fine foods
First class flights
Flowers & plants
Furniture
High-end electronics
Homes
Hotels & resorts
Interior design
Jewelry
Landscaping
Luggage
Luxury cars
Luxury pet services
Membership clubs
Musical instruments
Perfumes
Personal services
Private banking
Real estate
Renovations
Shoes
Skincare products
Spas
Sporting goods
Bespoke & tailored clothing
Theater & performance art
Vacations
Vintage items
Watches
Wedding dresses
Wellness retreats
Yachts

Superior Goods

Superior goods are items that tend to make up a larger percentage of spending as income or wealth rises. For example, the very wealthy spend may on private jets, whereas most people spend zero percent of their income on private jets. This can be contrasted with an inferior good such as fast food whereby a higher portion of your total spending goes towards the good as your income declines.

Veblen Goods

A veblen good is a product or service that receives higher demand at a higher price. For example, a New Year's Eve event that receives higher overall demand because its the most expensive nightclub in town that night. This is the opposite of a regular good that receives less demand as prices rise. A veblen good is mostly a theoretical construct and is exceedingly rare in practice. Normal luxury goods aren't veblen as demand increases a great deal if you discount them, particularly in the short term before the brand's status declines due to the discounting. If you sold a high end super car for $10 instead of $10 million demand would not be low. It is a common myth that all or most luxury goods are veblen.

Positional Good

A positional good is a product or service that is consumed by individuals with high status in a particular culture such that its consumption signals status and group membership. Positional goods may have a high price and may require some cultural capital to purchase. For example, membership in a private club that requires recommendations from existing members. The value of a positional good may fall if people of a lower perceived social standing are buying the good. This is known as the snob effect.

Scarcity

Scarcity is when a good or material is in limited supply relative to demand such that it is inherently expensive. It is common for luxury goods to incorporate scare materials in order to justify their price. For example, a luxury watch produced with rare metals and jewels.

Artificial Scarcity

Creating scarcity by producing products or services in limited numbers. For example, a fashion brand that releases limited edition designs of bags where 20,000 customers may want the design but only 1,000 are produced. This ensures that the brand can maintain high prices and the associated social status of high prices while selling out their inventory. It is a constant temptation for luxury brands to boost output and discount if they end up with inventory. This is known to reduce brand value as the moment you start discounting luxury it no longer feels unique, scarce and exclusive to a social class.

Collectables

Items that are scarce or completely unique that are of interest to enthusiasts in a particular area. Collectables can be considered luxury items based on their scarcity and demand. For example, rare antiques of exceptional quality.

Performance

Goods that offer higher performance than competitors. For example, a brand of sports car that regularly wins auto racing competitions that is known for its performance engines.

Customer Experience

Products and services that offer a superior customer experience in order to differentiate themselves from less luxurious offerings. For example, a first class flight with superior comfort, amenities, food, entertainment and services.

Customer Service

Customer service talent is a key differentiator in the luxury market. For example, a hotel that manages to find employees who make every customer interaction professional and pleasant.

Personal Services

Services that provide personalized attention such as a spa.

Size

Luxurious products and services often offer more space than regular goods. For example, a luxurious house with more space in its bathrooms than the average total house size in the same city.

Location

A superior location such as hotel located in the most convenient and upscale part of a city.

Legacy

A time-tested reputation and/or an interesting history. For example, a fashion design house that has a long history of serving royalty.

Quality

Quality is the value of a product or service to the customer. It is common for firms to try to find ways to increase quality in order to attract the interest of wealthy customers who may be somewhat price insensitive. For example, a restaurant that has a lush decor, talented chef and wait staff that uses rare and/or local ingredients to earn a reputation for quality.

Craft

A common way to increase perceived quality is to produce things by hand, particularly where this is done in a country with high labor costs. For example, shoes crafted by hand in Italy or France.

Bespoke

Bespoke is the practice of designing something unique for a customer in close consultation with them such as tailor-made suits. This implies a great deal of skilled labor is involved as opposed to a process of mass customization.

Haute Couture

Haute couture, or "high dressmaking", is the creation of custom fitted clothing. In France, this is a protected commercial term such that only fashion houses recognized by the Chambre Syndicale de la Haute Couture can use it.

Appellation

An appellation is a legally protected name that can only be applied to products, usually wine or food products, from a particular region that conforms to local standards. This is a means of creating artificial scarcity that gives farmers in a place incentives to produce superior quality as opposed to a commodity crop that receives a market price.

Brand

A legally protected identity for products and services owned by a single firm. This gives a firm an incentive to build a reputation for quality or simply build a sense of social status around the brand in order to be considered a luxury item.

Designer Label

A brand based around the personal image of a company founder or designer such as a fashion designer.

Middle Luxury

Middle luxury are luxury products, services and experiences that are marketed to the middle class as opposed to the bourgeoisie or upper class. For example, a relatively expensive watch that contains no precious metals or jewels but has a high status brand name.

Conspicuous Consumption

Conspicuous consumption is a purchase motivated by a desire to signal social status such as wealth, coolness, youth and popularity. In many cases, luxury brands capitalize on this motivation by providing highly identifiable products that are widely known to be expensive and associated with a number of well known individuals such as celebrities. In many cases, the middle class buy brands they associated with the bourgeoisie and the bourgeoisie buy brands they associate with the upper class. In other words, it is common to buy luxury that is difficult to afford to signal your economic strength relative to your peers.

Conspicuous Conservation

Conspicuous conservation is a purchase motivated by a desire to show that you are a good person. For example, attendance at an expensive charity dinner whereby guests can enjoy luxurious food while feeling good about themselves.

Private Events

Private events such as weddings often involve displays of wealth. Weddings alone represent a significant portion of luxury spending.

Arts & Culture

Art can be extremely expensive and offers a way to build cultural capital. Likewise, cultural and sporting events are often expensive and exclusive in that it can be difficult to secure tickets. As such, obtaining tickets to well known events can signal social status.

Corporate Luxury

Luxury goods that are marketed to corporations as, often nontaxable, benefits for employees. For example, luxury box seating at sporting events or a corporate jet.

Summary

The following are common types of luxury goods:

Overview

The high value of luxury goods is largely based on higher quality and greater exclusivity.
Overview: Luxury Goods
Type
Definition
Products, services and experiences that are relatively expensive and nonessential.
Related Concepts
Next: Superior Goods
More about goods:
Brown Goods
Business Goods
Capital Goods
Club Goods
Commodities
Common Goods
Common Resources
Complementary Goods
Consumer Discretionary
Consumer Durables
Consumer Goods
Consumer Products
Consumer Staples
Digital Goods
Durable Goods
Economic Goods
Experience Goods
Fashion Goods
Final Goods
Finished Goods
FMCG
Goods & Services
Inferior Good
Information Good
Intangible Goods
Intermediate Goods
Knowledge Product
Luxury Goods
Market Goods
Merit Good
Natural Resources
Necessity Goods
Perfect Substitute
Public Goods
Search Good
Social Goods
Soft Goods
Sporting Goods
Substitute Good
Superior Goods
Supplies
Unsought Goods
Veblen Goods
Virtual Goods
White Goods
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Goods

The common types of goods.

Consumerization

The definition of consumerization with examples.

Perfect Substitutes

The definition of perfect substitute with examples.

Club Goods

The definition of club goods with examples.

Consumer Discretionary

The definition of consumer discretionary with examples.

Fashion Goods

The definition of fashion good with examples.

Natural Resources

The definition of natural resources with examples.

Public Services

The definition of public services with examples.

Consumer Products

The definition of consumer product with examples.

Relative Advantage

A definition of relative advantage with examples.

Product Positioning

A list of common types of product positioning.

Durable Products

The definition of durable product with examples.

Cost Leadership Definition

An overview of cost leadership.

Economic Goods

The common types of economic good with examples of each.

Product Market

An overview of product markets with examples.

White Goods

The definition of white goods with examples.
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