Middle class does not exist, it's just a vague term assigned to people to make them feel better than the poor, and keep them devided instead of uniting against the rich.
@@johngrey9780in the US in African American areas you see a lot even with people living on government welfare money. Sure some of it is ‘informal economy’ but many just stretch to buy it.
The brands have done nothing. It’s social media exploiting and promoting envy. It’s very common to see people with luxury goods who very clearly cannot afford them. This is not thanks to brilliant marketers, but rather a sick society.
Luxury brands discovered they can market to middle class and working class people who historically would barely look twice at luxury goods. They can get those folks to buy the cheaper goods in their luxury lines or save up to buy more expensive items versus going to more mid-priced brands where they can get more bang for their buck. Those middle/working class consumers then get to feel like “they too” are members of the upper classes.
social media, in particular Instagram has done wonders for these luxury brands. As a prime example, with the Brand Louis Vuitton, the CEO is now the wealthiest person in the world. Which is absurd if you tihnk about it. What 'value' does Louis Vitton bring to people (it's all for show). Whereas, I wouldn't mind a scientist or inventor being the richest person, for inventing something that brings real value to people's lives.
I think at some degree, the pandemic also changed people’s perspective of life and they want to treat themselves better and lean to higher quality products.
@@JohnS-er7jh By capitalizing on people's stupidity, companies have figured out a way to guarantee income even in the toughest of times. For better or worse, human stupidity is unlimited, and it is for this reason that scientists or scholars will never be rich by capitalizing on human intelligence. In any case, Louis Vuitton (and other luxury brands) does bring some realistic value (and not just imaginary value) through their products as a IFF (Identification, Friend or Foe) system of sorts. Normally a person has to invest some time to figure out if someone is like-minded enough to get along with, but brands like LV make it easier to identify like-minded people to some degree. I am not at all into luxury fashion brands, so I know for certain that I won't get along all too well with someone who is covered in head to toe in luxury good.
Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Things are strange right now. The US dollar is becoming less valuable because of inflation, and other powerful nations waking up to trade in their own currencies. Good thing is, a lot of people still turn to the Dollar because of the safety is somehow assures. I'm worried about my retirement savings of about $420,000 losing value because of these factors and more. Where else can we keep our money?
Well, I suggest you make a diversification plan because it's been harder to build a good portfolio that stays afloat since COVID. Personally, I garner knowledge from a brokerage Adviser whom I work with, and I've actually made over $350K with their help since February. Very effective defensive strategies are used to protect my portfolio and make profits despite the ups and downs.
I encountered Julie Anne Hoover through my wife, and I emailed her. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested in. You can hunt her up online if you require care supervision.
@@jeffery_Automotive I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Julie up and send her a message. You've truly motivated me. God's blessings on you.
Same. I've owned LVMH for years now because i know that people would buy their overpriced products just to show off. The stock is up massively. Same for Apple
No, it's called wealth inequality. High income people usually do at least some work and pay a lot of taxes. High wealth people own stuff and don't pay taxes.
Frankly, the luxury brands are making worse products for a higher price and somehow growing their market cap. Even folks who CAN afford this stuff are put off by the price rises. Says a lot. Frankly even if most of us stop buying these brands (if we ever did) they'll continue to thrive due to the wealthy being really foolish with their money. Wealth inequality needs reigning in. Globally.
I agree. I've noticed perfumes have gotten weaker(only lasts 2 hours) but the price tag is higher. Perfumes weren't like that 10 years ago. Even cheap perfumes had better staying power. My apt recently got renovated. It looks good but the materials used are cheap.
The already wealthy have done very well since covid came along. Property prices have soared as has the stock market due to shortages and stimulus. So those in a good position were made even richer while everyone else was left further and further behind.
You guys are wrong. The poors can buy expensive things, but luxury brands will not sell to you, even if you have money. They will put you on a waiting list, do a background check, and make you develop a purchase history. Expensive and luxury are not the same.
Some luxury brands such as LV, CD price their goods outrageously high but pay so little to their mid to floor level employees, and let’s not forget some of these employees work and live in very high cost of living cities like NY and Paris
This is only if you don’t include the massive welfare states that have developed in the west. If you factor in the tax money going from upper income to lower, then not so much.
Rich people got richer during the pandemic and the people who invested when the stocks and real estate was down made alot of money. Everybody else got screwed
Very simply explained: luxury brand can charge whatever they want to the very wealthy and make incredibly high profit margin which are impossible for non-luxury brands. The very wealthy don't care to be screwed up by the luxury brands, cause in any case they don't know what to do with all their money (they have to spend it somehow).
Actually, they are unbeknownst to non-luxury brands as if they don't exist. You did not expect a Cadillac in St. Petersberg in pre-1990 times whilst mostly Ladas populated the streets.
The top 20 percent have seen their savings, income and asset prices skyrocket since 2019. The working poor have seen increased inflation, particularly higher housing costs and declining wages. There answered.
I'm prepping for harder times by buying long-term foods, investing hugely in my health, renovating the house, installing solar panels on my roof, and traveling a bit. I can't eat luxury goods when there's no food to be bought in the supermarket.
@@MariaGarcia-yv7ny - ah! I felt that same way during the beginning of Covid. I even bought my own seeds to grow lemons, tomatoes etc. But the free market economy ensured supply. Did not need it. So even during a pandemic, the supply chain held. My only fear is if war breaks out.
@@anakinskywalkerii4350 I think that the “pandemic” was just a trial run to test out a few ideas for them. A tool per se and that eventually things will get bad, after all a starving person is easier to control. In the modern world we literally rely on someone for everything, think about it we work to get money to pay for goods and services and realistically produce very little. I personally don’t like that food, fuel etc I could go on all day! It would be nice to take back some control and rely on ourselves a bit more.
@@RickMyBalls nope the first had never been crashing since great depression, the latter will just have a customer base regardless if majority of people have no food to eat, you just haven't try look deeper from bigger perspective
China restricts how much money their citizens can take out of the country, but that doesn’t restrict them from using a bank to or credit card yet. I’ve heard stories of Chinese tourists going on luxury shopping sprees and then selling the items at a discount for cash.
Don’t listen to rumours. There are loads of rich chinese shoppers but there are also some luxury traders who will buy luxury items in tax free places and reselling them in China.
@@windsong3wong828 these aren't just rumours from my experience. I have friends here doing exactly this as the value of the yuan falls off a cliff. People want their money out of china and into dollars.
Not just 5 years ago, it's been happening since the end of the last century. Globalization and neoliberalism jumpstarted around the 80s have overwhelmingly benefitted those who had the money to begin with. Then the tech booms of the last decades exacerbated the inequality even further. The upcoming AI boom will absolutely destroy the average people, while those with lots of wealth and the top talents will reap every last ounce of wealth. We need Roosevelt's New Deal level of government intervention to even put a dent in this inequality...
The middle class is not growing as a whole globally, we’re just seeing a boom in the availability of finance/buy-now pay-later services, since the pandemic. I’m surprised this factor wasn’t covered in greater detail. Yes, more people are buying luxury goods (especially in Asia) but that doesn’t indicate a growing wealthy population. If anything, the gap between upper and middle class is growing, as the middle try increasingly to move to the upper, socially. Just look at how many landlords are selling investment properties as mortgage and interest rates soar.
Most new UK properties are being sold abroad before even reaching the local market, esp in London. This results in soaring property prices, estate agents are having a party and everyone else suffers
Half the luxury cars seem to have been bought by young social media influencers on TikTok and the likes selling courses on how to get rich, crypto, etc.
growing economic inequality is the main reason for the growth of the luxury segment. Also luxury conglomerates target youth by selling them overpriced stuff pretending it's a collectionable or an investment piece.
3:00 Move the needle 意為「做出可察覺或可觀的進展 5:40 the region's high street with wealthy shoppers in up-market stores. 9:45 keep the experience exclusive. 10:40 the industry takes a big dip. 13:55 the final luxury sector - real estate.
Because, globally, the rich are getting richer, and the poor are getting poorer. So guess what? The rich are big consumers of luxury items. A very simple question with a simple answer.
I keep thinking about this situation I'm living in and it seems the best course of action is to cater to the rich because it seems they have tons of money to spend even when the markets are falling apart. Their wealth is not connected to the reality of the middle class and lower class.
Materialism has changed too, I noticed a lot of my friends and acquaintances who are mid income were willing to buy luxury items that they couldn't really afford. They just want to flex and look wealthier than they are
Because its the luxury paradox In an economic crisis people want to buy things they precieve as valuable hence the sales increase. Only middle of the road products suffer during such times.
Great episode! I went the opposite way. I sold my Lamborghini, Ferrari and rental properties in the inflation trade and housing boom. I then went down to a Porsche and became financially retired. Sitting back as we head into a deep long grinding recession.
Sometimes when a person lives in an ordinary place, has an average job & doesn't take fancy vacations, etc, a very nice luxury everyday handbag on their arms can make them feel terrific! Don't judge too harshly.
Rich people worth $50 million or more are unconcerned about higher interest rates or higher inflation, unlike middle class people. Rich folk usually buy houses for cash and their kids attend expensive boarding schools and private colleges and have no student debt. They buy whatever they want almost regardless of the cost which is why luxury brands prosper during bad economic times. John Kennedy was unaware of the 1930s depression until he heard about from his professors at Harvard in the late thirties.
This is common in inflationary situations. Same in the 70's. The upper classes tend to receive the money higher up and buy any asset that holds value real or perceived. It will collapse at a certian point.
More to do with social medias affect on peoples self esteem. Less people are having organic interactions and people want to be noticed more. Designer/luxury fashions entire marketing revolves around exclusivity and being noticed. Look at decades prior, only the top percentage of wealthy people even cared for these brands but the average person had much different interests and hobbies. Now its all about a persons image or theyll be left lonely.
It is gone, we lived through the zenith of our time. These bourgeoisie individuals in tandem with the corrupt govt. will take down this country like what happened to Rome. My condolences to anyone approaching retirement, you may have concerns over whether your pension pot will stretch to cover the rising cost of living, bad regulatory policies, bad energy policies and insane fiscal policies
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, we are finding it impossible to replace it. We can get by, but cant seem to get ahead. My condolences to anyone retiring in this crisis, 30years nonstop just for a crooked system to take all you worked for
@@lucasanthony5648I feel your pain mate, as a fellow retiree I'd suggest you look into trading services and investing and learn some more. For me, had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor-JOFFREY ADAM SMITH-for aid, and following him advice, I poured $30k in value stocks and digital assets,Up 200k so far and pretty sure I'm ready for whatever
@@lucasanthony5648Joffrey Adam Smith is a portfolio manager and investment advisor. Joffrey Adam Smith has demonstrated expertise in investment strategies and has been involved in managing portfolios and providing guidance to clients.
@@annemoore4461From being financially empty-handed to dedicating months of hard work delivering for Uber eats, I managed to accumulate approximately $20k, which I then invested with Joffrey Adam Smith. Currently, my investment has grown to $128k, and I couldn't be more delighted that you've brought him up in this conversation
I think this has to do with people getting out of fiat currency which is losing value continuously. They put their money into luxury items that they believe will hold value.
In basic Economics 101, the super luxuries work against the Law of Diminishing Demands because the expensive goods are catered to the ultra-riches who have no concept of money.
Disappointing. DW is usually much better than this - they spend most of the time reporting on how much money each sector is making and give a few reasons but don't actually delve into any detail about where all the spend is coming from.
Things that goes up quick will come down quicker. Heard so many friends venturing into businesses that were initially said to be rising now having a turn. So difficult to "predict" base on a circumstantial rise
Honestly, I'm unsure if investing is a wise move right now. Take note of how frequently things fail. As I still have some time before I retire, I'm still looking for a better strategy to invest my money despite reading charts and predictions from well-known investors from the past and present. In order to generate passive income, I want to build a solid and reliable portfolio.
The outstanding catch-up measures currently in place are unquestionably due to the Fed, as they were first too sluggish to contain inflation. The epidemic, supply-chain concerns, and the situation in Ukraine are all factors in the looming perfect storm of inflation. Not to mention the sharp increase in housing expenses, another factor that makes it challenging for the Fed to control inflation. To sum up, if you have the cash, get rid of it right away to benefit from the high savings rate.
The issue is this! Individuals with little to no experience in the stock market commonly try to buy on their own. Prior to actin appropriately and getting in touch with financial advisor in the US, I had the notion, but things have changed since then. I began seeing incredible returns on my investment...
@@lucianoboccedi Although this is impressive, my portfolio is in such horrible shape that I definitely need their aid. Tell me how I can get in touch with her, please.
@@evitasmith6218 Check up on ELEANOR ANNETTE ECKHAUS; in 2020, she attracted a lot of attention. I'm not sure whether I have permission to say anything, but... okay. She acts as my mentor and manages my portfolio.
Most people used to not know about luxury and didn't care. The imtermet and social media chamged that forever. My sister is ostensibly middle class yet her zoomer daughter has been begging for Chanel walets and YSL bags for birthday/Christmas since she was 16.
Right. I know those who buy luxury goods the moment they get their salary and have negative balance in their bank account before the next payday comes.
Very bad analysis of the luxury market. He says that during the pandemic they avoided public transport so the upgraded with high end cars and because of the chip shortage they went to quality instead of quantity. I mean does he even understand what he is saying or his previous job was McDonalds Lol 😂😂😂
4:17 100 million affluent families in China in 2021 and 200M in 2025? There are just 241.7M registered passenger cars in China in 2020. Owning a car or two does not make a family wealthy
I dont know if luxury has any appeal for me. Seems vanity driven (makes people feel good; how sad to hear that) I enjoy a good vacation and thats the luxury I know. Dont wear a watch for too long, good clotheses are easy to find, a simple car will do
I have seen a queue before a Rolex Showroom yesterday (almost any weekend day I pass the boutique) in Singapore. I used to think what economic recession they were talking about?
In a financial system who gives money and reward to people who have already money, it is just a normal way. Meritocracy does not exist, you have money you creat, you have talent, you work for people who have money that issssss it.
Because the rich are doing better than ever, while everyone else struggles to feed themselves. It’s the greed of the few condemning the rest to a life of struggle.
Iam 42 years old and times have changed so much. When I was 20 + we were more or less all the same, sure some had much more but it all looked normal, now young people 20 + you can see live much more luxurious and have expensive cars, goods already at their age. I wonder if they will be able to keep their parents payed lifestyle going forward.
Their parents were probably also wealthy and if someone can afford a luxury car they should be able to support Thor family too. The general public had more money back then where now just a few have even more. I believe you’re just coming out of the bubble you used to live.
there's a lot of youth living paycheck to paycheck but they splurge on luxury goods like handbags and $1,000 sneakers. It's the modern consumerist society.
I agree with these comments. It also makes no sense that people were riding mas transport until the pandemic, when they suddenly decided to buy a Lotus or Bentley.
Yeah I just decided after pandemic that life is to short to not live in a palace, but then my heating bill came so I guess I'll have to postpone the shopping for another century.
My social media timeline was flooded with luxury purchases. Small business owners and people in real estate were now flaunting Teslas and high rise apartments. The stimulus checks, PPP loans and grants put them in a new tax bracket. People were also scamming like crazy(many people were caught but not everybody!). Influencers also had a "boom"(more views, sponsorships,subscribers).
@@starrjohnson1327 Sometimes I wonder why everyone else knows how to play the system. I received precisely 2 stimulus checks over the 2 year period. Totalling US $ 2,000. I bought food.
Those people need to be taxed properly so that most stay within the same reasonable affluence. The difference between income is increasing heavily. Very tasteless. Trickle down does not work and this shows by rich people buying more unnecessary things.
There really is just a bunch of people that seem desperate to put on a facade of looking well off. Somehow the avergae new car in the US is 48k. It might be more however. We like big cars. Okay but 48k is absolutely absurd. Who can justify this huge cost? Who wpuld be willing to do into that much debt unless they really can afford it. On the other hand the US car fleet is older than ever. So loads of people still driving 20+ to 15 yeat old cars.
Luxury brands today are like the reverse canary in a coal mine: they can breathe while everyone else chokes. This is only a symptom of the obscene wealth concentration of our time.
The wealthy and the corrupt always look out for one another and have eachothers back. They keep eachother afloat but it may come at a a cost. (they know each others secrets or have worked too hard and long to let it go to waste)
don't group the wealthy with the corrupt. your woke socialist elementary/high school teachers were wrong. they also told you that you could be anything you wanted to be when you grew up didn't they? Fact is, you're not as smart as you think you are and you need to accept the fact that you will live a mediocre life and this is why you hate capitalism. just accept your fate and you will be much happier
A large number of middle class is struggling to survive in economic downturns in China. A bunch of old middle class can just lay down and get profit from real estate, while new middle class are stressful as high mortage and lower income even unemployed.
Covid disrupts the average consumer stuff, luxury brands provide a more convenient alternative while actively marketing to the middle class too. Makes a lot of sense
@@shauncameron8390 you have no idea, absolutely no idea! Where do you live?? The poor have no money to save or invest, they haven’t even got enough to feed themselves.
Louis Vuitton gained all that wealth in market value when Americans all ran to their store with their stimulus check to buy a Neverfull bag. They are now a dime a dozen In sightings, No longer luxury in my mind when nearly EVERYONE has one. But LV was the winner there!
In Europe 50% of income is taxed and payroll. Then they add VAT excise duties and of course inflation. Work simply does not pay and there are no incentives other than an obligation.
The uptick in luxury purchases is cuz of social media and societal pressures and the jones’ syndrome. People feel like they gotta keep up with their friends or neighbors to stay “cool” or keep up or they wanna look better than others by having others wow their new purchase. Or people feel sooo empty inside that they think they get some satisfaction in their self worth. None of these things will fix your insecurities and just puts you in insane debt.
Luxury goods served the same purpose as non luxury. A Chanel handbags are so heavy with all the metals on your shoulders or a lighter straps? Which one do I choose?. Of course, the lighter ones.🎉
Better to buy fine art , feed your soul not your ego, as a professional artist I create prestige pieces which grace walls internationally and yet I cannot pay for health care for injuries sustained 3 years ago it is very sad that the wealthy don’t support artists like me more, part of the problem i have is lack of exposure , the depreciation of their luxury goods isn’t a concern .The increased value of good fine art in relation to purchase cost far exceeds the values of most luxury goods in the long term . Julian bettney fine artist. London.
I've been working hard this year so the son of the owner of the factory can carry on being home office CEO from the Maldives for a while now. I am not joking the slightest bit. He is taking meetings from the beach house where you can see the palm trees. He will not survive a day working corporate job, without being escorted to the exit. How is that possible? Well daddys company happened to be near the military sector. They attempt to produce 5 pcs of article and scrap 50 more that does not meet the criteria? No problemo, all priced in. Me? Well I've been able to survive with 2 vacations over 2 weekends for the year and pay the bills, while praying my car wount break down and I can't afford to lose the job, but that's life right?
Luxury brands are Using cheaper and lower grade raw material. They also take their manufacturing to countries where they can pay less. E.g beaded fabric that used to be done in Italy could be moved to India. European craftspeople will be out of work and without an income.
You've hit the nail ... all these brands have moved from their artisanal production using the best materials and workmanship ... now you basically pay for a logo or brand, even if the product has replaced the traditional materials por eco-recycled plastics. Even entry jewelery has only a silver/gold coating around a plastic nucleus. All these brands obviously still have a limited set of real high-end apex products for those that can really pay ... but these corporations earn the most from all these aspirational customers
@@santoriniblue8413I am sorry these brands have been using artisans from India for the last 30 or 40 years it's not a new thing they kept it secret and is only coming clean now
If you say the booming luxury market is propelled by great many Chinese consumers, I would not be in the very least surprised. One small instance could account for all that. Whilst the majority of Chinese people have never set foot out of the soil of China and earn still little, a flock of princes and princesses of high ranking politicians and wealthy entrepreneurs have themselves educated abroad, some of whom even reside there. Actually, a playbook has been played out on and on in less privileged countries all over the world.
![[TH] 2024 PMGC League | Survival Stage วันที่ 1 | PUBG MOBILE Global Championship](http://i.ytimg.com/vi/FVFT-PFwU80/mqdefault.jpg)
" cost of living crisis" is for the struggling middle class and the poor people who survive somehow
I agree somewhat. U have a lot of poor ppl who buy this stuff
Middle class goods going under. Everybody wants expensive goods even the poor who can’t afford it
@@rahimi4762 You mean "poor" souls who chase for luxury products? No poor people could afford those luxury products. 😂😂
Middle class does not exist, it's just a vague term assigned to people to make them feel better than the poor, and keep them devided instead of uniting against the rich.
@@johngrey9780in the US in African American areas you see a lot even with people living on government welfare money. Sure some of it is ‘informal economy’ but many just stretch to buy it.
The brands have done nothing. It’s social media exploiting and promoting envy. It’s very common to see people with luxury goods who very clearly cannot afford them. This is not thanks to brilliant marketers, but rather a sick society.
Luxury brands discovered they can market to middle class and working class people who historically would barely look twice at luxury goods. They can get those folks to buy the cheaper goods in their luxury lines or save up to buy more expensive items versus going to more mid-priced brands where they can get more bang for their buck. Those middle/working class consumers then get to feel like “they too” are members of the upper classes.
social media, in particular Instagram has done wonders for these luxury brands. As a prime example, with the Brand Louis Vuitton, the CEO is now the wealthiest person in the world. Which is absurd if you tihnk about it. What 'value' does Louis Vitton bring to people (it's all for show). Whereas, I wouldn't mind a scientist or inventor being the richest person, for inventing something that brings real value to people's lives.
I think at some degree, the pandemic also changed people’s perspective of life and they want to treat themselves better and lean to higher quality products.
@@JohnS-er7jh YOU DANM RIGHT!
@@JohnS-er7jh By capitalizing on people's stupidity, companies have figured out a way to guarantee income even in the toughest of times. For better or worse, human stupidity is unlimited, and it is for this reason that scientists or scholars will never be rich by capitalizing on human intelligence.
In any case, Louis Vuitton (and other luxury brands) does bring some realistic value (and not just imaginary value) through their products as a IFF (Identification, Friend or Foe) system of sorts. Normally a person has to invest some time to figure out if someone is like-minded enough to get along with, but brands like LV make it easier to identify like-minded people to some degree. I am not at all into luxury fashion brands, so I know for certain that I won't get along all too well with someone who is covered in head to toe in luxury good.
not poor ppl can't own,
Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Things are strange right now. The US dollar is becoming less valuable because of inflation, and other powerful nations waking up to trade in their own currencies. Good thing is, a lot of people still turn to the Dollar because of the safety is somehow assures. I'm worried about my retirement savings of about $420,000 losing value because of these factors and more. Where else can we keep our money?
Well, I suggest you make a diversification plan because it's been harder to build a good portfolio that stays afloat since COVID. Personally, I garner knowledge from a brokerage Adviser whom I work with, and I've actually made over $350K with their help since February. Very effective defensive strategies are used to protect my portfolio and make profits despite the ups and downs.
@@jeffery_Automotive I appreciate your nice words and would like to get in touch with your account management consultant.
I encountered Julie Anne Hoover through my wife, and I emailed her. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested in. You can hunt her up online if you require care supervision.
@@jeffery_Automotive I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Julie up and send her a message. You've truly motivated me. God's blessings on you.
That’s why I rather buy luxury company shares than their overpriced products, because I know so many will fall for the logos no matter what and when.
This is such a self-aggrandizing comment lol
There’s tons of luxury brands that make well crafted goods without logos plastered on.
Same. I've owned LVMH for years now because i know that people would buy their overpriced products just to show off. The stock is up massively. Same for Apple
@@Stoneface_ 🤝
@@Stoneface_definitely a amazing stock the fact that the owner is the 2nd richest depending on the day speaks to how well the company is doing
It is called income inequality..
No, it's called wealth inequality. High income people usually do at least some work and pay a lot of taxes. High wealth people own stuff and don't pay taxes.
no not income, its wealth inequality. The rich have accumulated so much wealth that we are back to the 1920s in terms of inequality.
And it’s done on purpose…with little prospect to be stopped
@@break1722 law of the jungle. survival of the fittest
Modern £u genics- survival of the richest… wiping out the 99% gradually “wave by wave”
Frankly, the luxury brands are making worse products for a higher price and somehow growing their market cap. Even folks who CAN afford this stuff are put off by the price rises. Says a lot.
Frankly even if most of us stop buying these brands (if we ever did) they'll continue to thrive due to the wealthy being really foolish with their money.
Wealth inequality needs reigning in. Globally.
I agree. I've noticed perfumes have gotten weaker(only lasts 2 hours) but the price tag is higher. Perfumes weren't like that 10 years ago. Even cheap perfumes had better staying power. My apt recently got renovated. It looks good but the materials used are cheap.
People are not earning much but due to social networking sites the pressure to look rich has increased and so the sale of luxury brands
The already wealthy have done very well since covid came along. Property prices have soared as has the stock market due to shortages and stimulus. So those in a good position were made even richer while everyone else was left further and further behind.
On the contrary, i think that under the influence of social media people are spending recklessly on luxury brands.
Those in a good position were smart and worked hard and sacrificed to get themselves there, they earned it
You guys are wrong. The poors can buy expensive things, but luxury brands will not sell to you, even if you have money. They will put you on a waiting list, do a background check, and make you develop a purchase history. Expensive and luxury are not the same.
" everyone else was left further and further behind"...No, "everyone else" received free checks which they spent on lord knows what.
@@bdegrds this doesnt seem very accurate
Some luxury brands such as LV, CD price their goods outrageously high but pay so little to their mid to floor level employees, and let’s not forget some of these employees work and live in very high cost of living cities like NY and Paris
As the trend has been for the last 50 or so years,
Rich becomes richer, poor gets poorer.
I have a solution for you Comrade! You must seize the means of production! 😅
being poor or rich starts in brain
@@piotrwojdelko1150 yea, right!! You should come to California. We got as many as you want "king of the world" living under bridges
This is only if you don’t include the massive welfare states that have developed in the west. If you factor in the tax money going from upper income to lower, then not so much.
...and who is to be blamed....i dont think its rich....poor are buying those thigns in month end sales, festive seaso sales blah blah...
It just shows we are living in a dystopian world.
Soon we'll have trillionairs while we have unprecedented inequality and homelessness
everybody on social media loves the word dystopian. dare to be different
@@gregh7457 it's a big majority of patriarchal misogynists deciding on abortion
You should have been born in Russia during Lenin or China Moa time, when everyone is supposed to be equal, as in the Animal Farm.
Rich people got richer during the pandemic and the people who invested when the stocks and real estate was down made alot of money. Everybody else got screwed
Very simply explained: luxury brand can charge whatever they want to the very wealthy and make incredibly high profit margin which are impossible for non-luxury brands. The very wealthy don't care to be screwed up by the luxury brands, cause in any case they don't know what to do with all their money (they have to spend it somehow).
which in turn gives them enormous marketing budget so they can sell even more. Rinse and repeat.
They don't know what to do with their money??? A typical opinion of people with no money.
Actually, they are unbeknownst to non-luxury brands as if they don't exist. You did not expect a Cadillac in St. Petersberg in pre-1990 times whilst mostly Ladas populated the streets.
They are Veblen Goods. It’s a game only the wealthy play, where whatever they buy only increases in value.
the vast majority of people is not rich. What's wrong with it?!!!!
Just because someone has a Ferrari, it doesn't always mean they aren't in debt.
The top 20 percent have seen their savings, income and asset prices skyrocket since 2019. The working poor have seen increased inflation, particularly higher housing costs and declining wages. There answered.
Should be top comment. Neo-feudalism at it again. But wait, just pull up your boot straps dumb poor people, said every capitalist simp.
Stocks have dropped many lost
Since 2019? Since 1980.
@@bdegrds 🤣
@@bdegrdsmany of those stocks are coming back and some have came back and are hitting all-time high. Nvidia, Apple, Fortinet, Palo alto etc
I'm prepping for harder times by buying long-term foods, investing hugely in my health, renovating the house, installing solar panels on my roof, and traveling a bit. I can't eat luxury goods when there's no food to be bought in the supermarket.
What is “long-term foods”?
@@anakinskywalkerii4350 food that lasts for a long time, canned goods, noodles etc
@@MariaGarcia-yv7ny - ah! I felt that same way during the beginning of Covid. I even bought my own seeds to grow lemons, tomatoes etc. But the free market economy ensured supply. Did not need it. So even during a pandemic, the supply chain held. My only fear is if war breaks out.
Sounds like it takes a lot of money to invest for hard times.
@@anakinskywalkerii4350 I think that the “pandemic” was just a trial run to test out a few ideas for them. A tool per se and that eventually things will get bad, after all a starving person is easier to control. In the modern world we literally rely on someone for everything, think about it we work to get money to pay for goods and services and realistically produce very little. I personally don’t like that food, fuel etc I could go on all day! It would be nice to take back some control and rely on ourselves a bit more.
There are 2 things that completely disconnects with economic reality, those are stocks market and luxury goods
Not sure what you mean, those things are heavily tied.
@@RickMyBalls nope the first had never been crashing since great depression, the latter will just have a customer base regardless if majority of people have no food to eat, you just haven't try look deeper from bigger perspective
China restricts how much money their citizens can take out of the country, but that doesn’t restrict them from using a bank to or credit card yet. I’ve heard stories of Chinese tourists going on luxury shopping sprees and then selling the items at a discount for cash.
China…they don’t have credit cards…. They mostly spend cash only…communist countries are all the same…China, North Korea, Vietnam etc….
Don’t listen to rumours.
There are loads of rich chinese shoppers but there are also some luxury traders who will buy luxury items in tax free places and reselling them in China.
exchange, exchange, exchange.
@@windsong3wong828 these aren't just rumours from my experience. I have friends here doing exactly this as the value of the yuan falls off a cliff. People want their money out of china and into dollars.
Chinese economy is falling now. We shall see how long china could still keep buying luxury brands. This video is outdated with its data.
Rich are richer it's the working class who are far poorer than they were 5 years ago.
Not just 5 years ago, it's been happening since the end of the last century. Globalization and neoliberalism jumpstarted around the 80s have overwhelmingly benefitted those who had the money to begin with. Then the tech booms of the last decades exacerbated the inequality even further. The upcoming AI boom will absolutely destroy the average people, while those with lots of wealth and the top talents will reap every last ounce of wealth. We need Roosevelt's New Deal level of government intervention to even put a dent in this inequality...
The middle class is not growing as a whole globally, we’re just seeing a boom in the availability of finance/buy-now pay-later services, since the pandemic. I’m surprised this factor wasn’t covered in greater detail.
Yes, more people are buying luxury goods (especially in Asia) but that doesn’t indicate a growing wealthy population. If anything, the gap between upper and middle class is growing, as the middle try increasingly to move to the upper, socially. Just look at how many landlords are selling investment properties as mortgage and interest rates soar.
America doesn't even have a Middle Class anymore so I am curious where it exists now.
I agree middle class try to move socially ... in social circles, but not really in the financial status.
This is false, many countries became developed in the last decades, and many more are developing right now with a flourishing middle class.
Look @ Asia and read ur first sentence again.
The middle class is rising:))
@@exgod1 that's only in one country mostly. A single country does not a continental rise make.
Most new UK properties are being sold abroad before even reaching the local market, esp in London. This results in soaring property prices, estate agents are having a party and everyone else suffers
Half the luxury cars seem to have been bought by young social media influencers on TikTok and the likes selling courses on how to get rich, crypto, etc.
“Luxury” is one of the smartest branding terms ever used.
Since global inequality is still rising, rich people do obviously have more and more money that they can spend.
growing economic inequality is the main reason for the growth of the luxury segment. Also luxury conglomerates target youth by selling them overpriced stuff pretending it's a collectionable or an investment piece.
3:00 Move the needle 意為「做出可察覺或可觀的進展
5:40 the region's high street with wealthy shoppers in up-market stores.
9:45 keep the experience exclusive.
10:40 the industry takes a big dip.
13:55 the final luxury sector - real estate.
Because, globally, the rich are getting richer, and the poor are getting poorer. So guess what? The rich are big consumers of luxury items. A very simple question with a simple answer.
I keep thinking about this situation I'm living in and it seems the best course of action is to cater to the rich because it seems they have tons of money to spend even when the markets are falling apart. Their wealth is not connected to the reality of the middle class and lower class.
Materialism has changed too, I noticed a lot of my friends and acquaintances who are mid income were willing to buy luxury items that they couldn't really afford. They just want to flex and look wealthier than they are
The whole argument is that it's actually the opposite. Did you even watch the video? Lol
Because its the luxury paradox
In an economic crisis people want to buy things they precieve as valuable hence the sales increase.
Only middle of the road products suffer during such times.
Great episode! I went the opposite way. I sold my Lamborghini, Ferrari and rental properties in the inflation trade and housing boom. I then went down to a Porsche and became financially retired. Sitting back as we head into a deep long grinding recession.
The poor wouldn't always be able to buy food but the rich will always have money for luxury.
Sometimes when a person lives in an ordinary place, has an average job & doesn't take fancy vacations, etc, a very nice luxury everyday handbag on their arms can make them feel terrific! Don't judge too harshly.
Rich people worth $50 million or more are unconcerned about higher interest rates or higher inflation, unlike middle class people. Rich folk usually buy houses for cash and their kids attend expensive boarding schools and private colleges and have no student debt. They buy whatever they want almost regardless of the cost which is why luxury brands prosper during bad economic times. John Kennedy was unaware of the 1930s depression until he heard about from his professors at Harvard in the late thirties.
Money doesn't buy happiness, but it sure does help distract you from the sufferings of life.
cope harder
We'll all die the same way: alone and with nothing. Meaninglessness and empty lives are why this industry is booming.
This is common in inflationary situations. Same in the 70's. The upper classes tend to receive the money higher up and buy any asset that holds value real or perceived. It will collapse at a certian point.
More to do with social medias affect on peoples self esteem. Less people are having organic interactions and people want to be noticed more. Designer/luxury fashions entire marketing revolves around exclusivity and being noticed. Look at decades prior, only the top percentage of wealthy people even cared for these brands but the average person had much different interests and hobbies. Now its all about a persons image or theyll be left lonely.
Not hard when the money's gone to the top.
It is gone, we lived through the zenith of our time.
These bourgeoisie individuals in tandem with the corrupt govt. will take down this country like what happened to Rome. My condolences to anyone approaching retirement, you may have concerns over whether your pension pot will stretch to cover the rising cost of living, bad regulatory policies, bad energy policies and insane fiscal policies
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, we are finding it impossible to replace it. We can get by, but cant seem to get ahead. My condolences to anyone retiring in this crisis, 30years nonstop just for a crooked system to take all you worked for
@@lucasanthony5648I feel your pain mate, as a fellow retiree I'd suggest you look into trading services and investing and learn some more. For me, had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor-JOFFREY ADAM SMITH-for aid, and following him advice, I poured $30k in value stocks and digital assets,Up 200k so far and pretty sure I'm ready for whatever
@@lucasanthony5648Joffrey Adam Smith is a portfolio manager and investment advisor.
Joffrey Adam Smith has demonstrated expertise in investment strategies and has been involved in managing portfolios and providing guidance to clients.
@@lucasanthony5648a search on google with the keywords "JOFFREY ADAM SMITH" should get you what you need
@@annemoore4461From being financially empty-handed to dedicating months of hard work delivering for Uber eats, I managed to accumulate approximately $20k, which I then invested with Joffrey Adam Smith. Currently, my investment has grown to $128k, and I couldn't be more delighted that you've brought him up in this conversation
I think this has to do with people getting out of fiat currency which is losing value continuously. They put their money into luxury items that they believe will hold value.
In basic Economics 101, the super luxuries work against the Law of Diminishing Demands because the expensive goods are catered to the ultra-riches who have no concept of money.
Disappointing. DW is usually much better than this - they spend most of the time reporting on how much money each sector is making and give a few reasons but don't actually delve into any detail about where all the spend is coming from.
I always say - If you want career which will be profitable at all times, seek opportunities in the luxury sector.
it sells us a dream, an illusion that we’re rich.
Things that goes up quick will come down quicker. Heard so many friends venturing into businesses that were initially said to be rising now having a turn.
So difficult to "predict" base on a circumstantial rise
Honestly, I'm unsure if investing is a wise move right now. Take note of how frequently things fail. As I still have some time before I retire, I'm still looking for a better strategy to invest my money despite reading charts and predictions from well-known investors from the past and present. In order to generate passive income, I want to build a solid and reliable portfolio.
The outstanding catch-up measures currently in place are unquestionably due to the Fed, as they were first too sluggish to contain inflation. The epidemic, supply-chain concerns, and the situation in Ukraine are all factors in the looming perfect storm of inflation. Not to mention the sharp increase in housing expenses, another factor that makes it challenging for the Fed to control inflation. To sum up, if you have the cash, get rid of it right away to benefit from the high savings rate.
The issue is this! Individuals with little to no experience in the stock market commonly try to buy on their own. Prior to actin appropriately and getting in touch with financial advisor in the US, I had the notion, but things have changed since then. I began seeing incredible returns on my investment...
@@lucianoboccedi Although this is impressive, my portfolio is in such horrible shape that I definitely need their aid. Tell me how I can get in touch with her, please.
@@evitasmith6218 Check up on ELEANOR ANNETTE ECKHAUS; in 2020, she attracted a lot of attention. I'm not sure whether I have permission to say anything, but... okay. She acts as my mentor and manages my portfolio.
@@lucianoboccedi I did check her out, I see why she's booked up, her creds/resumé is topnotch. I booked a consultation with her regardless.
Most people used to not know about luxury and didn't care. The imtermet and social media chamged that forever. My sister is ostensibly middle class yet her zoomer daughter has been begging for Chanel walets and YSL bags for birthday/Christmas since she was 16.
I’d imagine some regular people are racking up debt to try and keep up with the Jones’s
Right. I know those who buy luxury goods the moment they get their salary and have negative balance in their bank account before the next payday comes.
And then you wonder why some countries have a household debt problem. The US for all of its consumerism is not in the top 10.
Not a coincidence. We are struggling because the rich keep getting richer.
No. We are struggling because we don't know how to live within our means.
@@shauncameron8390 nope. Go read up on neoliberalism.
The concept of luxury goods is often illusory to people
Very bad analysis of the luxury market. He says that during the pandemic they avoided public transport so the upgraded with high end cars and because of the chip shortage they went to quality instead of quantity.
I mean does he even understand what he is saying or his previous job was McDonalds Lol
😂😂😂
It's ironic that not wealthy people buy the most luxury brands just to look rich but no savings 🤷
That would be me and I love it lol
The goal is to be rich, not to look rich
@@butapioka true, but it’s more fun when you look hot and feel hot lol
How do you know? Are you super rich?
So is nobody gonna talk about the Stimulus Checks that got spent on Luxury Items
4:17 100 million affluent families in China in 2021 and 200M in 2025? There are just 241.7M registered passenger cars in China in 2020. Owning a car or two does not make a family wealthy
It does in china if the cars are imported ones otherwise you are right if the cars are chinese
I dont know if luxury has any appeal for me. Seems vanity driven (makes people feel good; how sad to hear that)
I enjoy a good vacation and thats the luxury I know. Dont wear a watch for too long, good clotheses are easy to find, a simple car will do
Everyone who can't afford luxury stuff say that
Indeed. So called "luxury" good are usually ghastly looking bling for those with more money that brains.
@@alonzoperez2470you can’t afford it either 😂
Would this indicate the widening gap between economic classes?
Millionaires spend all their money on luxury while billionaires look like they're poor.
Because billionaires employ more peasants and end up paying more peasants
I have seen a queue before a Rolex Showroom yesterday (almost any weekend day I pass the boutique) in Singapore. I used to think what economic recession they were talking about?
Excellent analysis; great speakers and actionable insights. Thank you.
In a financial system who gives money and reward to people who have already money, it is just a normal way.
Meritocracy does not exist, you have money you creat, you have talent, you work for people who have money that issssss it.
Because the rich are doing better than ever, while everyone else struggles to feed themselves. It’s the greed of the few condemning the rest to a life of struggle.
Hardly. A lot of the rest condemned themselves to a life of struggle with their instant gratification and inability to manage finances.
@@shauncameron8390I wish I didn’t break my leg I can’t afford to get it fixed.
Imagine keeping your money instead of paying companies with already billions. Make yourself rich then your neighbors not a company
You must be a drug dealer keeping all cash based and don't use a bank
Iam 42 years old and times have changed so much. When I was 20 + we were more or less all the same, sure some had much more but it all looked normal, now young people 20 + you can see live much more luxurious and have expensive cars, goods already at their age. I wonder if they will be able to keep their parents payed lifestyle going forward.
Their parents were probably also wealthy and if someone can afford a luxury car they should be able to support Thor family too. The general public had more money back then where now just a few have even more. I believe you’re just coming out of the bubble you used to live.
there's a lot of youth living paycheck to paycheck but they splurge on luxury goods like handbags and $1,000 sneakers. It's the modern consumerist society.
Young People online will flash luxury for clicks but reality is they are broke with maxed out credit cards
@@method341 well put
@@bdegrds young people dont use credit cards man lol not gen z anyway....
I agree with these comments. It also makes no sense that people were riding mas transport until the pandemic, when they suddenly decided to buy a Lotus or Bentley.
Yeah I just decided after pandemic that life is to short to not live in a palace, but then my heating bill came so I guess I'll have to postpone the shopping for another century.
@@duncan.o-vic That's funny. Me, too!
@@duncan.o-vic 😂😂😂😂😂😂
My social media timeline was flooded with luxury purchases. Small business owners and people in real estate were now flaunting Teslas and high rise apartments. The stimulus checks, PPP loans and grants put them in a new tax bracket. People were also scamming like crazy(many people were caught but not everybody!). Influencers also had a "boom"(more views, sponsorships,subscribers).
@@starrjohnson1327 Sometimes I wonder why everyone else knows how to play the system. I received precisely 2 stimulus checks over the 2 year period. Totalling US $ 2,000. I bought food.
Those people need to be taxed properly so that most stay within the same reasonable affluence. The difference between income is increasing heavily. Very tasteless. Trickle down does not work and this shows by rich people buying more unnecessary things.
Middle class shoppers are hitting economic crisis, this is the replay of the credit card crisis in the US 20 - 30 years ago
There really is just a bunch of people that seem desperate to put on a facade of looking well off. Somehow the avergae new car in the US is 48k. It might be more however.
We like big cars. Okay but 48k is absolutely absurd. Who can justify this huge cost? Who wpuld be willing to do into that much debt unless they really can afford it.
On the other hand the US car fleet is older than ever. So loads of people still driving 20+ to 15 yeat old cars.
Luxury brands today are like the reverse canary in a coal mine: they can breathe while everyone else chokes.
This is only a symptom of the obscene wealth concentration of our time.
The wealthy and the corrupt always look out for one another and have eachothers back. They keep eachother afloat but it may come at a a cost. (they know each others secrets or have worked too hard and long to let it go to waste)
don't group the wealthy with the corrupt. your woke socialist elementary/high school teachers were wrong. they also told you that you could be anything you wanted to be when you grew up didn't they? Fact is, you're not as smart as you think you are and you need to accept the fact that you will live a mediocre life and this is why you hate capitalism. just accept your fate and you will be much happier
A large number of middle class is struggling to survive in economic downturns in China. A bunch of old middle class can just lay down and get profit from real estate, while new middle class are stressful as high mortage and lower income even unemployed.
What a horrible world we live in
it dosen't make sense keeping money in a such high inflation event .I spent as much as possible I lost confidence soon money will be worthless
Luxury is luxury, I'm not against nor for it. The main question is what do they stand for
Where I live on the west coast carrying a LV purse is basically a uniform for poor people.
People spend to feel better.... 😕 😪
Lot of depression 🫥 cost of housing & lack of hope make people spend in debt
The second hand watch market isn’t going well though? Usually jewelry is the first to go, then cars, then houses.
Very relatable for most people 🤪
Its a common pheomena it happens in every crisis
Covid disrupts the average consumer stuff, luxury brands provide a more convenient alternative while actively marketing to the middle class too. Makes a lot of sense
Rich people will be richer and poor people poorer. I know it's obvious in this world, but something should be done to stop this process.
The rich save and invest. The poor spend all they have.
@@shauncameron8390 you have no idea, absolutely no idea! Where do you live?? The poor have no money to save or invest, they haven’t even got enough to feed themselves.
How much of this is driven by debt?
It’s good to be rich! 👍🏼
Better, rich with expensive tastes. You can't be rich and have poor tastes forever.
Louis Vuitton gained all that wealth in market value when Americans all ran to their store with their stimulus check to buy a Neverfull bag. They are now a dime a dozen In sightings,
No longer luxury in my mind when nearly EVERYONE has one. But LV was the winner there!
In Europe 50% of income is taxed and payroll. Then they add VAT excise duties and of course inflation. Work simply does not pay and there are no incentives other than an obligation.
Guy at 12:39 literally didn’t say anything that addresses how non eco friendly the private flight industry is.
Washing stolen money has always been “cheap” and “worth” it.
The uptick in luxury purchases is cuz of social media and societal pressures and the jones’ syndrome. People feel like they gotta keep up with their friends or neighbors to stay “cool” or keep up or they wanna look better than others by having others wow their new purchase. Or people feel sooo empty inside that they think they get some satisfaction in their self worth. None of these things will fix your insecurities and just puts you in insane debt.
The rich are becoming richer. This is why.
They got rich because they are wise! They are so united in getting rich! If we all copied them, they will not get so rich!
Luxury goods served the same purpose as non luxury. A Chanel handbags are so heavy with all the metals on your shoulders or a lighter straps? Which one do I choose?. Of course, the lighter ones.🎉
Considering that the most wealthy will be even more rich long term (and the poor more poor) this business is really future proof!
Not reversing private jet trends because number of mayors that request but state will definitely reduce private terminals
Better to buy fine art , feed your soul not your ego, as a professional artist I create prestige pieces which grace walls internationally and yet I cannot pay for health care for injuries sustained 3 years ago it is very sad that the wealthy don’t support artists like me more, part of the problem i have is lack of exposure , the depreciation of their luxury goods isn’t a concern .The increased value of good fine art in relation to purchase cost far exceeds the values of most luxury goods in the long term .
Julian bettney fine artist. London.
I've been working hard this year so the son of the owner of the factory can carry on being home office CEO from the Maldives for a while now. I am not joking the slightest bit. He is taking meetings from the beach house where you can see the palm trees. He will not survive a day working corporate job, without being escorted to the exit. How is that possible? Well daddys company happened to be near the military sector. They attempt to produce 5 pcs of article and scrap 50 more that does not meet the criteria? No problemo, all priced in. Me? Well I've been able to survive with 2 vacations over 2 weekends for the year and pay the bills, while praying my car wount break down and I can't afford to lose the job, but that's life right?
Spending on a per capita basis is irrelevant, that’s like saying even homeless people are relevant to the luxury market.
The rich want enjoyment before they die to reduce regrets.
I think so.
But luxury brands have also been hit hard by theft and also have lost billions!
Minimalism follows on from conspicuous consumption.
Luxury brands are Using cheaper and lower grade raw material. They also take their manufacturing to countries where they can pay less. E.g beaded fabric that used to be done in Italy could be moved to India. European craftspeople will be out of work and without an income.
You've hit the nail ... all these brands have moved from their artisanal production using the best materials and workmanship ... now you basically pay for a logo or brand, even if the product has replaced the traditional materials por eco-recycled plastics. Even entry jewelery has only a silver/gold coating around a plastic nucleus. All these brands obviously still have a limited set of real high-end apex products for those that can really pay ... but these corporations earn the most from all these aspirational customers
@@santoriniblue8413I am sorry these brands have been using artisans from India for the last 30 or 40 years it's not a new thing they kept it secret and is only coming clean now
we don't need too much... simple life is great...
If you say the booming luxury market is propelled by great many Chinese consumers, I would not be in the very least surprised. One small instance could account for all that. Whilst the majority of Chinese people have never set foot out of the soil of China and earn still little, a flock of princes and princesses of high ranking politicians and wealthy entrepreneurs have themselves educated abroad, some of whom even reside there. Actually, a playbook has been played out on and on in less privileged countries all over the world.