In a layman's language a luxury product is a thing which is not of an essential need, but it's really not possible to define luxury because a thing of need for one person might be a luxury for a person who has a lower income than that of person.
Luxury is very subjective in nature and its definition varies from person to person. Despite the substantial body of knowledge accumulated during the past few decades, researchers still have not arrived on a common definition. Several efforts have been made to define luxury, based on the parameters of price and quality. It also states that any expensive product, in its category, can be classified as luxury.
For example, using good fragrance perfume might be a need for a marketing employee but it is thing of luxury for a peon.
It is very well said that clothes and shoes determine a person's status and class. So, the people are getting more conscious about what they are wearing and also about what the other person is wearing.
Rise in standard of living
Nations across the world are striving for economic development which has led to an increase in the per capita income, especially in the developing nations. This has led to a rise in the purchasing power and more number of people can now afford to buy an expensive and designer piece of dress or accessories.
certain countries there is a huge disparity between the rich and poor and the
rich are becoming richer which has given a boost to the sales of luxury brands.
Due to this, the party and the red carpet culture have also flourished. In
such parties and events repetition of a dress is considered as a stigma on the
personality's social status. So there is a never-ending demand for branded,
unique and sophisticated stuff in this class.
Constantly developing countries are seen as an opportunity for example; designers Paris Hilton and Roberto Cavalli launched their exclusive stores in India in 2012 and claim them to a success.
Japan, China, UK, USA, Taiwan, Russia, Germany, Italy, France, Brazil, Spain and Switzerland are considered to be the top twelve markets for luxury goods. These countries account for 83 percent of the total market for luxurious apparels. Japan was leading luxury market when China surpassed it in 2012.