In the lives of the rich and famous, £600,000 for a diamond encrusted Christmas tree topper is seen as acceptable. And it doesn?t stop there, there are pens available for just short of £1 million and Rolex watches fitted with diamonds for close to £45,000. Together with Angelic Diamonds, retailers of engagement rings, we take a look at the market of expensive goods and investigate how some items earned their price tags.
The attraction to pricey purchases
Of course, many of the super-rich make expensive purchases simply because they have the disposable income to do so. But, there are other reasons why consumers feel the need to splash their cash on costly goods.
One of these reasons is to demonstrate social status. In one argument by French philosopher, Pierre Bourdieu, it was suggested that the things that consumers buy are ways of communicating a ?symbolic hierarchy? to others ? a way to distinguish their place in society. Other research found that women purchased designer handbags and shoes in order to signal status ? it can be one way of preventing other women from going near their man. The attitude of the buyer also determines if they are likely to make a luxury purchase. Age can affect these attitudes, too. By 2025, Bain & Company predicts that Millennials and Generation Z will account for 45% of the global personal luxury goods market.
The growing digital world is also influencing the luxury market. In fact, 70% of luxury purchases are influenced by online int...