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1. What are the defining characteristics of the luxury goods industry in 2013? What is the industry
all about today?
The defining characteristics of the luxury goods industry in 2013 are products that are not
essential to have, but are associated with status. Luxury goods today are considered to have a higher
quality than other brands. Luxury goods will also stand out among the other brands, because they are
well-known and harder to obtain.
Most companies in luxury goods use differentiation strategies. In comparison to many other
industries, the luxury goods industry seems to be unique by various meanings. All manufacturers that are
engaged in the industry follow a clear brand differentiation strategy because of the fact that there are
limited possibilities to differentiate the products by various features. Luxury goods were only targeted for
wealthy consumers, because products signified status. The luxury good market is continuously growing
because of the fact that the wealth increasing not just in the United States, but globally. Nowadays, more
and more mid-income households are attracted by the advertisements of luxury goods and therefore wish
