The Economics Behind Luxury’s Staying Power
Unlike everyday goods, many luxury products become more desirable as prices rise, signaling status and permanence. During downturns, core clientele often maintain purchases, illustrating inelastic demand. Share whether you have witnessed this effect yourself and what price signaling means for long-term brand resilience.
The Economics Behind Luxury’s Staying Power
Tight supply, limited editions, and master craftsmanship create controlled scarcity that stabilizes demand even when broader consumption weakens. Waiting lists reinforce perceived value and reduce discounting pressures. Comment if you think scarcity strategies support trust or if they risk alienating newcomers in choppy financial cycles.