She puffed delicately on her nails and said, looking like a Goddess in the low, ambient light of their posh environs, “Darling, anything in high demand must be in short supply – how else would you define luxury?” Well, exclusive tastes, here we come…
Exclusivity as a concept has long been the subject of much debate. To understand luxuries, it is imperative to first understand how it nullifies the rules of demand as applied to necessities and comforts. The demand for luxuries grows in proportion with the growth in one’s income. In the past decade, the word income has come to encompass concepts like wealth and brand value as well. This has, in turn, given rise to a new set of phenomena that have arisen as a matter of side effects.
For starters, one of the most important side effects of the addition of such parameters is the rise and demand of exclusivity. Everyone suddenly wants to have what his or her neighbour can, cannot and would like to own. In the case of having what the neighbour ‘can’ have, a consumer wants an upgraded version. In the case of what the neighbour ‘cannot’ have, comes the demand for exactly that. And in the case of what the neighbour has an eye on, comes the quest to find it first. Exclusivity has effectively reversed the laws of elasticity of demand, leaving uncertainty and hard selling as the only logical outcomes along with time bound entry into markets, new innovations at the blink of an eye, and more research as to what keeps the high life, flying high.
In case of luxuries, the importance of measuring and predicting demand and its elasticity is enhanced. This can be attributed to the fact that global markets are shifting everyday as are attention spans. With ‘more’ being the basic mantra for markets and consumers, there is little left to the imagination and even less than that, to a yet untapped market. It is now all about innovations within the same products and services, and a unique selling strategy that promises a slice of the sky that no one else can claim!