Glamor Economics

Chapter 42

Chapter 6, Section 5 Don't seek the best, only seek the most expensive——luxury consumption
There is a classic line in the movie "Big Wrist": don't ask for the best, only ask for the most expensive.This is actually a phenomenon of luxury consumption that is not uncommon around us.Luxury consumption has a long history and is a common social phenomenon.

French Emperor Napoleon III was a man who liked to show off.He often holds a large banquet to entertain guests from all over the world.At every banquet, he always put on an air of superiority.Almost all the utensils on the table are made of silver, except for the bowl he uses which is made of aluminum.Why is the emperor of France not using noble and bright silver bowls, but aluminum bowls with a much darker color?It turns out that in the Napoleon era, gold and silver were smelted and used for a long time, and there were many silverware in the court.At that time, people had just learned that aluminum could be smelted from bauxite, and the technology for smelting aluminum was still very backward, so it was very difficult to smelt aluminum.Therefore, aluminum was a very rare thing at that time, not to mention that ordinary people could not afford it, even ministers and nobles could not use it.Napoleon asked his guests to use silver tableware, but he used aluminum bowls to show his nobility and dignity.

It must be ridiculous to get this matter now, because today, aluminum is not only much cheaper than silver, but its luster and performance are far inferior to silver.The reason why aluminum became cheap is that people later invented the technology of electrolytic aluminum, which can produce aluminum in large quantities.

The main raw material for aluminum smelting is bauxite, which has a large reserve on the earth.Abundant raw materials, sufficient electricity, and high-efficiency production technology have led to a rapid increase in aluminum production, and aluminum has become a very common thing.Aluminum is so ubiquitous, who wants to show it off like Napoleon did?For people in Napoleon's era, aluminum bowls were undoubtedly a luxury item. As time passed, luxury items became a daily necessity for ordinary people.

As far as human consumption is concerned, the means of subsistence that maintain and continue the basic survival of the human body are essential consumer goods, such as food that meets the needs of human metabolism and housing that meets people's living needs.At different stages of economic development, the standards and scope of means of survival are also different.With the continuous improvement of the consumption level, the types and quality of the necessities of consumer goods continue to increase, and the consumer goods that meet the needs of people's advanced enjoyment are luxury consumer goods.In different stages of economic development, the connotations of luxury consumer goods are also different. In the stage of low economic development, they are luxury consumer goods, and as the economy develops, they may be transformed into essential consumer goods.

There are four main motivations for human beings to pursue luxury goods:

1. A symbol of wealth and honor

Luxury goods are items of the aristocratic class, and it is a representative of the image of the aristocracy.Today, although the society is democratic, people's "concept of wealth and honor" has not changed.Rolls-Royce is a symbol of noble cars.

2. Look good

The advanced nature of luxury goods should be visible.It is precisely because its luxury is "obvious" that it brings glory to its owner.Therefore, luxury goods must provide visible value - people look good and feel good.Those who buy luxury goods are not looking for practical value at all, but looking for the "best" feeling.

3. Personalization
It is precisely because of the individuation of the product that it creates a reason for people to buy.It is precisely because of the personalization of luxury goods that it shows its noble value.

4. Sense of Distance

In terms of market positioning, luxury goods serve a small number of "rich people".Therefore, in order to maintain the superiority of the target customers, we should make the public have a sense of distance from them.Luxury brands must constantly set up consumption barriers to keep mass consumers away.

[links to related words]

Internationally, luxury goods are defined as "a kind of consumer goods that exceed the scope of people's survival and development needs, and have the characteristics of uniqueness, scarcity, and rarity", also known as non-necessities of life.In terms of economics, luxury goods refer to products with the highest value/quality relationship ratio.From another point of view, luxury goods refer to products with the highest ratio of intangible value/tangible value.From an economic point of view, luxury consumption is essentially a high-end consumption behavior, and there is no distinction in itself.

(End of this chapter)