ABSTRACT
As luxury products become more accessible to a broader range of consumers, developing markets grow to be the new driving force of the industry as a whole. Thus, it is vital to understand the emerging luxury market, including consumer perceptions of luxury, consumer behavior, and the impact of luxury consumption on consumer and social well-being. This chapter first identifies what luxury is. Defining the term is important because the definition of luxury is comparatively subjective. People from different areas often have very different definitions of luxury. Also, even within the same region, the perception of luxury can vary according to social status, age, and mindset. We then dig deeper into 11 crucial emerging markets in five regions: Asia-Pacific, MENA (the Middle East and Northern Africa), Africa, Europe, and the Americas. Detailed analyses are provided for each market to explore their distinguishing features. We find that, for most of these countries, Westernization and colonialism play an essential role in shaping consumers’ desire for luxury goods and their purchasing power. Besides, the authors explore the relationship between luxury and the labor market, finding that some luxury companies have been taking advantage of cheap labor in developing countries. Phenomena like these can harm the image of the whole luxury industry, as consumers are becoming increasingly aware of supply chain integrity. In addition to its social impact, the luxury industry also influences consumer well-being. However, there is no consensus on whether that impact is positive or negative. This situation may be because luxury, and thus its impact, is defined differently in different regions.
