Luxury Markets: An Evolution of Variation

Luxury goods have existed since the beginning of civilization. In fact, the creation of luxury goods helped further the development of a complex civilization. Yet, how has the luxury goods market changed since then? How has it evolved into a mass market valued at the size of $1.2 trillion in global sales? At the same time, in what aspects has the luxury market remained the same? One of the common themes is our constant struggle with our moral principles and the seemingly instinctive desire for opulence. We all understand that money can’t buy happiness, and our desire for luxury can’t be satiated and continue to strive for wealth. In this paper, I argue that luxury purchases are an irrational form of investment and analyze this through the ever-evolving aspects of the history of luxury markets. In addition, I aim to identify the contributing factors that lead to both the changing and static aspects of these markets. By doing so, I set up a framework by first defining what the word ‘luxury’ is and what ‘luxury products’ are characterized as. Ultimately I point to forward looking areas in which the future of luxury markets will travel towards to in light of both the COVID-19 pandemic induced recession as well as the long-term future.