Luxury goods encompasses several product categories, including drinks, fashion, cosmetics, fragrances and watches.
The value of the personal luxury good market is around 250bn EUR worldwide, with the biggest chunk located in the US – worth 97bn alone.
In the high-end market, consumer purchase decisions are typically driven more by brand reputation than by product quality or price.
This can be seen in luxury advertisements, which tend to appeal to emotions – by depicting a desirable lifestyle or featuring a celebrity – rather than demonstrating product features.
French conglomerate Louis Vuitton Moët Hennessy, better known as LVMH, is the largest, valued at $29bn in 2016.
Online channels, despite the tumult caused by competition from ecommerce businesses, gave most retail stores a host of benefits, such as democratized access to product information for consumers, third-party reviews, and the chance to list products on other websites.