Luxury consumption in the 21st century: growth drivers, risk factors, and sustainable development strategies

This research is devoted to the analysis of key determinants affecting the dynamics of the global luxury goods market. The article examines the correlation between the sales of luxury goods in 20 countries and a number of socio-economic factors. The results of the analysis indicate that economic growth, although it contributes to an increase in demand for luxury, is not its main driver; political instability, in general, has a negative impact on luxury consumption, with the exception of countries with developed shadow economies. Contrary to expectations, the luxury market demonstrates resistance to inflation and a relatively weak reaction to the devaluation of national currencies. Based on the results obtained, practical recommendations for businesses aimed at marketing personalization, the development of e-commerce and beauty blogs are formulated. Some measures are proposed to regulators, including progressive taxation of “demonstrative” luxury, support for local craft industries, and restrictions against offshoring and “pseudo-luxury”.

luxury goods market, economic growth, luxury consumption, social inequality, political stability, Veblen effect, luxury taxation, personalized marketing