Conspicuous consumption, as most people know, is that which is out of the ordinary. It is not needed for day-to-day living, nor for survival. Consumption becomes conspicuous when its superfluity and excess become apparent. It comes with a hefty price tag and as such is not within the reach of everyone. Only those privileged with wealth can indulge in it with abandon. The propensity for excess and extravagance adds a measure of exclusiveness. It also goes by the name of luxury. There was a time when sybaritic life was the exclusive preserve of the few - the royalty and the rich. That started to change with the spread of wealth and commoditisation of luxury goods.
According to Bain and Company, an international market research firm, about 10 million people are joining the luxury market every year all over the world. From the domain of the royalty and the aristocrats the enjoyment of luxury has spread to embrace other classes. The democratisation of luxury has not taken place under political pressure. Relentless work has been the invisible hand of the market. Profit motive has led producers of luxury goods to reach out to middle class whose appetite for luxury goods consumption is growing, slowly but steadily.
The basic needs of life have ceilings and after those are crossed satisfaction for consumption can come only from luxury goods. The spread of luxury market moves in tandem with economic growth and a reasonable redistribution of wealth. Though inequality in possession of wealth prevails more people than before have now income enough and to spare after meeting basic needs. The luxury market has not failed to observe this demographic change.
The report published by Bain and Company has mentioned that the buyers of luxury goods have increased in threefold over the passed twenty years worldwide. In 1995 the buyers of luxury goods numbered 90 million. The number rose to 330 million in 2013, a phenomenal rise by any yardstick. According to the estimate made by the company, the luxury market in 2020 may have 400 million buyers going up to 500 million in 2030. The number is increasing both as a result of attraction for luxury goods by groups of people outside the traditional one and keen competition among luxury goods producers.
Established brand names have an edge over newcomers in attracting buyers. The not-so-heavyweight luxury producers try to win over buyers with quality products and good design. Both of these producers face competition from a third group of luxury goods makers, the counterfeiters. Fake and imitation products bearing famous brand names are ubiquitous and the difference between these and original products cannot be discerned at first sight. Of course, the cognoscenti are not fooled by the make-believe products and keep them at arms length. Their buyers are mostly the newcomers to the luxury market or those who buy knowingly because they cannot afford the original.
Luxury products range widely in types and prices. From yachts to hand bag their variety has proliferated. The purveyors of luxury are even turning out objects of daily necessity into luxury vintage. Think of a fountain pen by Mont Blanc or cigarette lighter by Du Pont. Some of the luxury goods are both for use and demonstration effect, with emphasis on the latter.
Possession of a luxury item not only speaks of refined taste, it also differentiates one from others who don't own it. As luxury goods are becoming cheaper and more accessible to a greater number of people through a competitive market the old aristocrats of luxury consumption move to the upscale market where goods are made to order conferring distinction. The world of luxury goods has become as variegated and interesting as the human race. In the ultimate analysis, luxury is not a product, it is a way of life.
There was a time when modern luxury items were used by the rich and aristocrats in Europe and America. Now they can be seen all over the world embraced by new classes. According to Bain and Company, the maximum use of luxury goods can be seen in the Middle-East. The highest per capita expenditure amounting to US$ 2000 has been recorded by them in the oil-rich Arab countries. Among the luxury items, most sought after in these countries are cars, watches, diamonds and leather goods. There is a slow but steady entry into the luxury market by the Chinese rich.
In the worldwide craze for luxury goods Bangladesh has also joined. The rich and wealthy among the Bangladeshis have become passionate collectors of designer handbags, shoes, watches, jewelry, perfume, clothes and even sunglass. There are shops in Dhaka and Chittagong that proudly display luxury goods with famous brand names. Worryingly, the young generation has also become hooked on luxury items even before becoming income earners.
Are luxury goods good or bad for the society and economy of a country? The answer depends on where they are made and sold. Countries producing luxury goods create jobs and help in wealth redistribution. A country like Bangladesh that buys and sells luxury goods made abroad cannot claim this. Luxury goods in a poor country has no justification other than being luxury. It is a conspicuous consumption with no redeeming social and economic features.
hasnat.hye5@gmail.com
Of conspicuous consumption
Hasnat Abdul Hye | Published: April 08, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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