Especially as many of these products are partially or entirely manufactured in non-Western countries.
In: Economics
Because they are expensive. That’s the only reason why anything is seen as luxury in anywhere on the world.
It can be because the items are marketed as being luxury items and also priced as being luxury items.
All of the most in-demand luxury brands are western (and primarily European) because they’re the oldest, the have the greatest “history” behind them, and they’ve proven that they can maintain quality standards/hold reasonable value over the long term.
Take Louis Vuitton as an example.
It was founded in 1854 and was the exclusive trunk maker to the then-Empress of France.
Hermes is even older, founded in 1837 as a maker of high-end saddles, bridles, etc, to the French nobility.
Ferrari was founded in 1939, and has consistently produced some of the most beautiful, powerful, and exclusive vehicles in the world.
Luxury is all about perception.
The old European luxury brands have the cachet that comes from centuries of producing the finest quality and most expensive luxury clothing, bags, cars, etc.
They’re instantly recognizable to virtually anyone who matters, there are huge collectible possibilities, and they generally are very high quality.
It’s extremely difficult to convince someone that something is truly “luxury” instead of just “expensive”.
The European luxury houses accomplished that 100+ years ago, and have maintained it ever since.
Because certain countries in the Western world are cultural hegemon whose media and ideas is regularly consumed by the rest of the planet.
Reputation and scarcity.
Where I live we don’t have White Castle burgers, but I know they are well-loved and famous. I’ve never seen a White Castle, and it’s likely I never will. If I saw someone walking up the street with a bag from White Castle I would do a double take, because it doesn’t exist here, and I can’t buy it at any price.
The flipside is showing up with In N Out in White Castle country. To you it’s normal, but to them it’s remarkable.
If you’ve never seen something, and you can’t get it, it’s notable. This is the backbone of conspicuous consumption.
Show up with something that other people can’t get, and you become special. That’s an experience that is sought after and people will pay a premium to have it.
Because of the cost and quality. Just because a Banana Republic shirt is made in Sri Lanka doesn’t mean that people there can readily afford to buy one.
Because that’s what’s exported.
In Germany, Mercedes is a full-range transport company, selling trucks, busses, and cars. In the US, it’s a luxury car brand because those big ticket items where the transportation costs are a reasonable fraction of the total price.
Latest Answers