The significance of luxury goods

Firstly, luxury goods can serve as an effective tool for storing wealth in the economy. Due to its enduring value, luxury goods such as jewelry play a similar role in preserving their value as gold. In addition, the existence of the second-hand and rental markets for luxury goods also provides consumers with more choices and flexibility.

Secondly, luxury goods have a symbolic role at the societal level. They can display a person’s social status and help identify their social class. People who own luxury goods are often considered to have higher social status, wealth, and taste, which helps them build confidence and satisfaction in social interactions. Luxury goods have also become interpreters of social relations, historically only the upper class of society had the ability to enjoy luxury goods, therefore they play an important role in social stratification.

Finally, luxury goods provide spiritual satisfaction and self-identity on a psychological level. Owning luxury goods can bring confidence and a sense of achievement, especially in important occasions or after completing challenging tasks. Rewarding oneself with a desired luxury item can become a spiritual motivation. In addition, the uniqueness and scarcity of luxury goods also satisfy human pursuit of beauty and desire for unique identity.

The definition of luxury goods refers to consumer goods that are beyond the scope of people’s survival and development needs, and have unique, scarce, and rare characteristics, also known as non essential goods. The production materials, craftsmanship, and quality control of luxury goods are very high, often ensuring the high quality of products through handmade production, carefully selected materials, and strict quality control.