The Economist on Luxury Goods

by Jörgen Eriksson on July 6, 2013

2011_maybach_57s_62s_hd_widescreen_wallpapers_1920x1200The International University of Monaco, where I teach innovation management to the MBA class, has become a leading academic institution in undergraduate and masters level education on luxury brand management. Increasingly larger number of students are looking to make careers in this field.

As long as there has been people, there has been luxury goods. However the market for luxury goods has exploded in recent decades, as the video below from The Economist explains.

The Economist on Luxury Goods

 

Luxury goods are said to have high income elasticity of demand. As people become wealthier, they will buy more and more of the luxury good. This also means, however, that should there be a decline in income its demand will drop.

Income elasticity of demand is not constant with respect to income, and may change sign at different levels of income. A luxury good may become a normal good or even an inferior good at different income levels, e.g. a wealthy person stops buying increasing numbers of luxury cars for his automobile collection to start collecting airplanes.

About Jörgen Eriksson :

Jörgen Eriksson is the founder of Bearing and is the Chairman of the firm since it was created. He has successfully expanded Bearing into covering projects on four continents. He is also Adjunct Professor of Innovation Management at the International University of Monaco and at Universitat Politècnica de Catalunya in Barcelona and he is an active member of the Founders Alliance organisation.

Working with consulting engagements across Bearings practices, he has over the past fifteen years participated in and supervised a large number of client projects, from innovation system development and place development and branding, to merger and acquisition assignments and leading edge research and business development activities for key clients.

His new book, Branding for Hooligans, will be published in 2015. It is about how innovation and branding are key survival factors in our modern times of hyper competitive markets.

Prior to Bearing, he was Director of Europe, Middle East, and Africa for Trema Treasury Management, a technology and consulting services provider, supplying financial software solutions for the global financial industry, Clients included The European Central Bank, Citibank, SEB, South African reserve Bank, Deutsche Bank, Abu Dhabi Investment Authority (ADIA), as well as many other large financial institutions and Fortune 500 companies.

Early in his career Eriksson was educated at the Stockholm School of Economics, where he studied economics, financial economics and philosophy. He then worked in Scandinavian investment banks and also for the Swedish Institute of National Defense Research.

You can contact Jörgen on e-mail jorgen.eriksson@bearing-consulting.com, connect on LinkedIn on http://fr.linkedin.com/pub/jörgen-eriksson/0/38/8a0/ and follow him on twitter on joreri508.

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