‘Nobody knows what luxury is anymore’ – Marc Bain
Gucci, Chanel, Louis Vuitton, Hermes, Rolex, Tiffany, Dior, Armani, Prada, and Balenciaga are at the top of the list of the most luxurious online brands, thanks to their high ranking in share of search interest, web traffic, social media audience and social media engagement (Luxe Digital). Yet, the classical definition of luxury goods has been reshaped by these brands in such a way that ‘the concept of luxury is getting blurry, making it less clear where it begins and ends.’
Goods for which demand increases more than proportionally as income rises, and are a contrast to “necessity goods”, where demand increases proportionally less than income do not fully represent the concept of luxury as it is currently harder to define, and designers and businesses are ready to capitalize on the ongoing transformation in the fashion industry.
Why are luxury goods in the fashion industry different now?