In business, luxury goods are just that — a luxury. This means they are not necessary to live, but these goods are in high demand in a particular culture or society. People with the funds to purchase these goods are willing to pay a high price for luxury items due to exclusivity, the idea that not everyone will be able to get the item or experience a brand is selling. Therefore, people can show off their wealth by owning these items or partaking in these experiences offered by luxury brands.

Examples of Luxury Items and Services

Luxury items can differ between different cultures, societies, and people, but the following items are commonly considered luxury goods in the American economy:

• Accessories such as high-end watches and jewelry
• Designer clothing
• Luggage and handbags
• Sports cars and other high-end vehicles, including boats and yachts

Luxury goods can also refer to services that are desirable but not necessary to live. Examples of luxury services in America include:

• Flying in first class
• High-end spa and beauty services
• Having a housekeeper or nanny
• Having a private driver

How Does a Brand Become Luxury?

While a luxury good is technically any item that is unnecessary to live, in the consumerist world, the definition goes a bit further. Luxury can be hard to define, as the factors that determine whether an item or service is luxury can differ, depending on the good or service in question. Some factors that can be considered when determining if a good or service is a luxury are:

• Quality and craftsmanship. Luxury products are often made with higher quality materials and better craftsmanship than their competition, which also leads them to last longer. Poor quality materials and craftsmanship are often the giveaways when it comes to counterfeit products, such as faulty zippers on a handbag or a poorly sewn neckline on a shirt.
• Price. A high price tag doesn’t automatically make a good or service luxury. Companies that price items too high can be considered “overpriced” if they are not already established as a highly sought-after brand. Luxury items are often more expensive because they offer more than their less-expensive counterparts, not simply because they cost more.
• Exclusivity. People want what they can’t have. When a brand’s product or service is unavailable to everyone, it can become more desirable and luxurious. Companies that have waitlists, VIP client perks, and are more expensive can be seen as more luxurious due to the exclusive nature of their product or service.
• Design aesthetic. Those who purchase luxury goods often do so because they want to stand out and show that they have the money to spend on such goods. Therefore, luxury items tend to communicate this through unique and sophisticated design aesthetics that show off the quality of the item and let their luxury status be known without needing to be explained.

What Are Veblen Goods?

Typically, goods follow the law of supply and demand, meaning as prices of an item decrease, demand for the product tends to increase. Veblen goods are luxury goods that defy the laws of supply and demand. As the product becomes more expensive, it becomes more desirable, and as the price decreases, people lose interest in the product.

Veblen goods are desirable status symbols. People don’t purchase Veblen goods to hide them. They want to show them off and let others know they’ve purchased them to increase their social status. For example, someone who buys a $2,000 Gucci handbag is going to wear it proudly rather than hide it in their closet to collect dust. However, if Gucci started slashing prices to $100 per handbag, their product would become less desirable since it is no longer as exclusive to those with significant wealth.

How Luxury Evolves Over Time

As society changes over time, so does what is considered a luxury. For example, animal skins and furs used in fashion were once considered high luxury. While this could still be true to some, our society has, for the most part, adopted the idea that animal brutality should be stopped. This has made designer clothing and accessories made with animal products less desirable.

The concept of sustainability as a whole has had an impact on the luxury goods industry when it comes to our society seeking to create less waste and minimize the emission of greenhouse gases. This impacts most industries in some way, including fashion, automobile, and travel industries. Luxury brands need to be aware of societal changes and how they impact a brand’s desirability and should aim to make adjustments if they want to stay relevant.

Importance of Trademarking Your Luxury Goods

If you are a business owner, it is important to protect your brand and its reputation by trademarking your logo and company name. This is an effective way to prevent others from attempting to capitalize on your strong reputation. A strong trademark can help you to protect your brand from falling victim to copycats attempting to make and sell counterfeit products. Without a clear and strong trademark, you could have a difficult time winning a case, so a lawyer can help guide you through the process of creating a specific and unique trademark that is more likely to hold up in a legal case.

In addition to the importance of trademarking to avoid others from copying your brand, trademarking can also help your brand increase its luxury status. When you are the only brand offering a particularly sought-after item or experience, interested consumers have no choice but to support your business. Without trademarking, others can attempt to take advantage of your successes legally by creating businesses with names or logos similar to yours, leading to a saturated market and confused consumers.

Protect Your Luxury Brand

Working with an experienced trademark law attorney is crucial when it comes to developing a trademark and protecting your brand. You should not wait until your brand is popular before starting the process, as these types of cases can take a while, and you could be susceptible to your trademark being stolen as the case moves through the system. At Four Reasons Legal, we have over a decade of experience helping businesses protect their intellectual property and are ready to help guide you through the process of protecting yours.