The Luxury Market
Abstract A world luxury market is estimated to be valued at 317 billion dollars. It is developing by following the specific laws, barely reacts to the economic crisis, and has regular customers, whose loyalty has been formed in the course of several generations. Nevertheless, the main feature of the luxury industry is that the rules there usually define the producer, not the consumer. This and other features distinguish luxury market from the consumer goods market and determine the objective need for identification of specific marketing tools that have proven to be effective. The paper is focused on the evaluation of general aspects of the development of luxury market and its recent trends, focusing on the Middle East segment. Moreover, the paper will emphasize the particularly negative features of the current luxury market. The purpose of the research is to analyze the theoretical and methodological foundations of the luxury industry, focusing on its new geography and challenges...