Examples of Luxury Goods

On economy, is named luxury goods or luxury goods to certain products and services that are not necessary for survival, but are optional even though they may affect a better lifestyle. For example: Late model cars, original works of art, mansions. This type of goods is characterized because as the income of a consumer, also proportionally increases its demand of luxury goods; and if the consumer's income falls, logically their purchase of these goods also falls.

Luxury goods, as well as basic necessities, are a type of normal good (that is, they meet the normal law of demand), and that means that to increase its demand, it must also increase the income of the consumer. However, luxury goods are distinguished from basic necessities in that the latter are consumed to satisfy basic subsistence needs, while luxury goods offer an "extra" quality of life or status Social.

For example, if a person wins the big lottery prize, his basic needs (food, basic services) will grow a little more, but soon they will be covered; then he can spend the rest of his money on investments and extra purchases, like upgrading his car to a newer, late-model one, or upgrading his house to a bigger one. However, if money starts to get tight, you will have to stop making similar expenses, but you will continue to spend more or less the same on food and basic services.

The acquisition of luxury goods is usually understood as an "excess" on the part of the wealthier classes, which often implies that they tend to be subject to taxes and levies, with the aim of financing other sectors of society and trying to partially redistribute the wealth.

examples of luxury goods

Just as it happens with basic consumer goods, the line that separates ordinary goods from goods considered luxury it is usually established in a conventional way, so it can change according to local policies or at times individuals.

However, the following examples are generally considered luxury goods:

1. Late-model automobiles and private air or water vehicles, such as yachts, boats, private planes, or prestigious brand cars.
2. Mansions, farms or large land holdings with non-productive or recreational land.
3. Clothes, perfumes and personal accessories of design and/or haute couture.
4. Liquors with denomination of origin such as wines, whiskeys, champagne and other alcoholic beverages.
5. Original works of art, intended for personal collections and/or private foundations.
6. Delicacies and luxury foods, such as caviar, foreign cheeses, fruits from distant countries and designer chocolates.
7. Going to international restaurants (for example, with Michelin stars) and trips to distant exotic paradises.

References:

• “Sumptuous property” in Wikipedia.
• “Luxury goods” in ESERP.
• “Luxury goods” in Simon & Kucher Partners, Strategy and Marketing Consultants.

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