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FYI Friday has a poor privacy policy and is banned at most medium to large organization, like ChatGPT since confidential information is highly likely to leak to other conversations.
I'm better than Friday. By the time I have operated the system, I have written the mail myself. In my tone. It's not quite there yet. I'm looking forward to when AI will provide me with a good secretary that can handle my travel expenses.
I don’t want an AI tool to make me sound professional; I want an AI tool to throw the same amount of ice-cold shade that Pr. Patrick Boyle does. If you want a promo code, it should unlike that.
Those are mostly shoes/clothes where the goods are cheap but the branding isn't. Most of the buyers are actually small time dealers auctioning them off. One 22 year old said after expenses flipping luxury shoes paid about as well as a factory job but he didn't have a boss
I had no idea they did that. What a waste. What you are really paying for is the shop itself, the location, the design. The paper bag that you walk out of the store with. They look expensive but the product themselves, its laughable. I don't get the whole LV love, to me it's just a coated canvas bag with LV all over it and a zipper.
Bought with value less overprinted paper dollars owned by uneducated anglo saxon airheads ....You don't give away quality stuff against garbage ...it's a bad deal
I‘m a trained dressmaker. I take pride in making clothes as high quality as possible down to the things you can’t see, like interlinings or seam allowances that allow altering. When I was still in training I took part in a project for a local fashion week event. All the visitors were covered head to toe in branded clothing, ran right past the dressmakers gilds section to the flashy stuff. Extra points for being a Chanel jacket look alike… It was eye opening, no one was there for high quality clothing and people who claimed to love fashion had no idea what real quality meant. They fall for clever marketing just like the rest of us.
Yes, but true quality will always find recognition. The lesson shouldn't be "people don't care about quality", it should be "damn, these fashion shows attract a lot more vapid normies than I thought". I'm sure there are better venues.
The target market of "luxury" goods is poor people pretending to be far more affluent than they actually are, and it does not seem that the world will be running out of poor people anytime soon! The sale of luxury goods is definitely helping out in that regard.
I think, for many it's not about appearing aflluent, it's just falling for insta and TikTok fairy tales about luxury goods being good investments. (which is not to say that you cannot make money buying and reselling luxury goods. It's just fairly risky, and requires market insight and liquidity that most wannabe investors do not have)
I've been saying this my whole life. All that expensive stuff is just a trap to keep you poor, living paycheck to paycheck. For me, being rich is just knowing if I lost my job I could survive for at least 6 months.
Speaking of trainers, fairly recently in the sneaker collecting world has been growing realisation that polyurethane foam does not actually hold to long-term storage, and a lot of very expensive sneakers are literally turning to dust, worthless.
This is leading to an even more hilarious case where people are buying a resoling particularly expensive ones the way high end car dealers trade the twisted hulks of wrecked Ferraris and then rebuild them, ship of Theseus style.
@@viator22 LOL! So true. Watching some videos of Porsche rebuilds your reminded that at the end of the project, only the badge and some body panels are original.
@tomlxyz you can spend $100 on some comfortable, fashionable shoes that will last a couple years and go with most outfits, or tou can spend $1000 on a pair of leather shoes that go with your formal attire and "last forever" but you still have to get resoled multiple times. You wear shoes. They get worn. Period.
“27% of luxury goods are bought by people making under $50k.” I remember going to a coach store with my gf in the early 00s and it was chaos - like pigs at a trough. It completely changed her opinion on the brand and luxury goods in general. the idea of “style shows status” was vaporized. The best test of luxury as status is go to a store yourself and observe the people shopping there. That’s what you’ll be associated with if you buy these things. Take that in and then make a buying decision
I have an elderly friend who is a cobbler by training. I once walked with him through local high street and he started pointing out in the windows how badly made the luxury brand shoes were from a craftsman perspective. That was a fascinating perspective, albeit not a surprising one. He said he could make the best custom fit shoes I could ever hope to wear for less than half of the price of what was on display. Personally, in a way I'm grateful LV bags and such exist though. They tell me a lot about the people who carry them. Mostly to stay well clear...
@@fulaan1a lot of channels on youtube and tiktoks made custom bags and they usually attract customers by opening up LVMH products and show how much cheaper higher quality products can be made. They usually have online store too..
Personally, in a way I'm grateful comment sections on TH-cam and such exist. They tell me a lot about the people who comment. Mostly to stay well clear of judgmental ones.
It was never about quality. That’s just a delusion people tell themselves. Not sure why though… like, just say you want to look good, nothing wrong with that 😂
It's such a scam. I remember in my previous company a new girl got her first bonus and bought a $5,000 Chanel bag. She was back to living paycheck to paycheck after that. She wore her bag everyday for a year and it got all ratty looking. I feel bad that she fell for that scam.
One of my favorite things to spot that instantly makes me chuckle to myself is seeing people at airports covered head to toe in designer brand and carrying branded suitcases, only to queue up for Economy.
@@cordulamsure, but if it looked ratty after one year, 5,000 dollars objectively was not worth it. My mom has had forty and fifty dollar bags from stores like kohl’s last her half a decade. She bought them because they looked nice, had a good price, and used them until they wore out. This lady bought a $5,000 bag because she wanted a status symbol, probably liked the look of it, then wore it out in a year.
@@DannyDevitoOffical-TrustMeBroExactly, my non-branded shoulder bag is still going after nearly a decade. A year is pathetic. And I carry heavy stuff in mine too.
My bag was made by an 85 year old leather worker at the top of his game. It will last the rest of my life and longer. The art on it is what I picked out along with the colors. Getting unique things made by craftspeople and paying them directly is where I put money I’m willing to spend on a luxury items. I paid him $200. Worth every penny to have something no one else has made just for me.
Yes, but this has nothing to do with a mass-produced bag with manufacturing cost of $80 and retail price of $1800. They may have been made with the same materials and will both last, but in the second case, you pay not only for the bag and the craftwork but business-related expenses. I personally find the latter ridiculously unnecessary and the first more personalised and humane approach.
more people should research to see if there's a local craftsman's guild near them. I've made wearable goods and utilitarian wood/pottery crafts for people at a fraction of the cost they'd pay online or in-store and I'm not using polyester or particle board. I've got maple just sitting in my barn waiting for someone to need a chair, bowl, cup, book case, dog house, etc. and I'm only going to charge them electric + tool maintenance + minimum wage and a 5% profit since I got the wood for free from an arborist. Have you seen how expensive a chair is? Noooo thank you.
To quote my grandmother, "You can always spot the New Money because they are wearing absolutely all of it... often leveraging so that they can wear more than all of it."
@@effexon Half the world population lives on less per day than the hourly minumum wage in the US. The worst salary in the West is still "wealth" if you look at global incomes.
Depends a little bit on the product. If you can afford to splurge on some Le Cruset when you are young you will still be cooking with it when you are old. Meanwhile I buy inexpensive enamelware about once every five to ten years depending on the piece and how much use it sees.
I got a very small ID holder from an entry level luxury brand, and it was on sale. It's for my birthday and since I feel I have not enough space for more stuff, I wanted something special and practical. In this case, it was an indulgence I could afford.
I work at a mid-size law firm that has several lawyers who bill $1,000+ an hour. Those people don't wear Gucci and Louis Vuitton. They wear Land's End and Eddie Bauer. Whenever I see someone who's covered head to toe in designer shit, I just assume they've got a lot of credit card debt and that they're stupid.
@@Vivian-ks7jr absolutely. Like I never consider what brand of clothes someone is wearing, I just notice how they fit and how they make the person look. That's why I buy all my clothes from Uniqlo. I like that their clothes are unbranded and I also like how they fit on me.
@@realSethMeyers Yours and many others' mindset and self-control are admirable. But like football, which lost its allure to some, there remains enough enthusiasts to keep it rolling.
To me, luxury goods always seemed a lot like a tax on narcissism. The main thing that needs to be corrected is that small creators need to be the producers, not the corporations. Probably the best wealth redistribution scheme out there.
Some items have better manufacturing techniques or different manufacturing techniques that make them expensive. I think it’s also good to ask why someone bought the item that they bought. If they say something along the lines of “I saw it on social media” or “so and so has it” then they’re def on the superficial level. This also starts to paint a picture of what someone deems as luxury. As sometimes it’s not a physical thing.
Rubbish talk, another person spouting off that word if it doesn’t meet your agenda. A quality blue chip brand watch is an asset that in increases with value over time. Pateks, aps, some Rolexes you’ve pretty much doubled your money and more on some watches over the last 5 years What is the asset or investments youre exposed to that has outperformed that
@TonyParker-vo4sx Have you ACTUALLY sold a used watch at a profit? If so, I’m shocked. My gf has a slew of high end watches, she went to see about selling some of them around 5 or 6 yrs ago. The only one that was actually worth anything was the Rolex and iirc, it still wasn’t that great. This is with women’s diamond watches, maybe men’s are a different story.
People like to point out the fact that the poor spend almost as much on luxuries as the rich, but they forget the fact that these stats only take into account a very specific category of luxury, mostly wearables. Poor people buy these things precisely because they are a cheap way to signal status. Rich people buy luxuries such as nicer cars and houses, which cannot be measured by these sorts of statistics.
@@stevecatpatrick8056 Until money goes to assisted living and home health services because kids are not going to wipe mom's butt at 2am in the morning or stop dad's attempts to roam the neighborhood at all hours - as they see their inheritance wiped out to long term care provided by paid caregivers who are getting harder to find as Boomers desperately compete to find someone especially afterhours. That's when their adult kids stop living with their parents. When Millennials reach that age, care costs are going to really hurt. 🤑
@@stevecatpatrick8056love Kirkland! I have their clothes, sun glasses, wiskey, you name it 😂. Yup, I’m planning on retiring in my 50s. I don’t own any “luxury” goods and have no desire to
One other reason for the spike in luxury goods sales during the pandemic may have been the the restrictions on travel which led to big savings on airfares etc. which many used to treat themselves to expensive personal items. As travel resumes, luxury sales may accordingly fall
You grossly overestimate the number of people that actually travel lol. Its actually all the covid money poor and young people received who have no idea what to do with their money. So they blew it on stupid shit like this.
That’s what I did. Instead of traveling those years when I was stuck in China for pandemic I bought the Gucci belt I always wanted (I just really liked the look of it). But I’ve worn it nearly everyday since for the 2 years I’ve had it so I guess it’s paid itself off?
Thanks for the great straight to the point hilarious content and for not using clickbait titles. I know this is just pennies for you but it's a token of appreciation. I wish there were more creators like you.
Amen 🙌 I am a Buddhist socialist female systems analyst that most men in my classes of '80's couldn't comprehend in California Polytechnic but had only one woman professor in the computer field that my college decided to create a degree that combined business with computers as we were to be trained to be at the top of the IT department of any company. I was 30 with last class to actually produce a punch card for a computer program for a batch processing. Nobody gives respect for intelligent woman and we still are not leaders of governments or corporations because we obtain an education but governments and business still expect women to maintain three jobs or child care and elder care while working 60 hrs every week at a company. It isn't rocket science to understand the statistics of the birth gap because my generation and younger women know the facts of TIME. A human requires specific things that additional "time" no matter what you think additional hours and days cannot be obtained with the purchase of even one so-called luxury good doesn't bring happiness but luxury goods producers hope they can convince a person to make the exchange of the person's time payment for their product when that person as a toddler should be happy without a so-called "luxury good" to impress someone else because the MARKETING now on computer software. Thank you Patrick a man of my true ❤❤❤❤🥰
Yup and it is more often fake. I have worked with a number of them (in media) and quite a lot rent out a lambo or luxury boat for a day, get underwater on leases. Their view/sub count is often botted in hopes it will drive organic traction later (seldom works well) and they are often in breach of their contracts with brands who hire them for nonsense rates.
I think it is driven by a soul sickness that shines a bright light on how devoid of purpose, balance and sense their young existences are; empty meaningless lives. Very sad group.
Another example of how so much "fine art" is a scam, and the buyer should VERY much be aware. Buying what one likes is fine, re art, but there is a HELL of a lot of decent sculpture, glass, and paintings available for well under $100, for used stuff. And I defy the vast majority of people to tell that from anything seriously valuable with similar characteristics (if it's not labeled at a gallery). I found a great trick for collecting fancy stuff and enjoying it dirt cheap. Buy nice BOOKS full of great photographs and color plates, showing various nice stuff. I have muscle car collections, art glass collections, great vase collections, and massive collections of paintings and some nice sculpture. All contained neatly in one shelf of nice books for WELL under $1000 total, and I've gotten TREMENDOUS enjoyment from the contents with no clutter, space taken, need to buy insurance, pay taxes, and on and on. But hey, I don't mind being a living example of Granny or Jed in "The Beverly Hillbillies", re my spending habits AND likely being happier than people who score happiness on keeping up with the Joneses and houses full of knick-knacks of "collectibles".
Just to add more context to this in terms of fashion history, LVMH began this model of big budget shows and a lot of PR attention to drive the mid-masses to buy a luxury bag of shoes in the 90s, you also said this in the video. But this was done with McQueen and Galliano in the 90s because they were the ones that made the most electric shows and became celebrities in themselves specifically for their theatricality. However, esp for Galliano, their design literally didnt matter to Arnault because they didnt need to be sold if the bags and shoes were selling (which they were). However, as this model that once was novel became the norm across the industry, too many of those entry point products like keepalls were sold and they got far too diluted, their luxury, unattainable image was tarnished. The brands started to just raise the price faster than inflation to beat that, but still, because they lost their exclusivity, they lost their desirability. This is the start of the fall of that retailing trend with brands like Hermes and Chanel trying to create a new higher luxury thats harder to actually obtain, things like Chanel shoes and Hermes bags are notoriously difficult to get, turning them into a new higher luxury that targets the top 10% of client that accounts for the lions share of sales. Thats the shift thats happening from inside the industry and why it seems like its bursting. The LVMH bubble will, but luxury wont Also, you talked about Burberry being a victim of this and it kind of was, but not really in the way you said. The problem was that Burberry had licensed the check out to companies in Spain and Japan before the burberry check was popular. Then, following a window display that took the customer attention it got popular with their very small customer base. It was then turned into bags and umbrellas etc by mainline burberry without them anticipating their licensees would copy that idea for their own products. The licensees produced too much of the check, it got everywhere, heavily faked and burberry couldnt get out of the licensing agreements and it hurt their brand. The reason this ties into the LVMH model is because without that the general public simply wouldnt have been interested enough in luxury for it to become a motif, which in turn saw it adopted by what-we-then-called chavs who wore the check in football brawls and on holiday in europe which gave both brits and the brand a bad reputation. It ties in, its just from an older business model which was popular in the 70s/80s, whereas the LVMH model is from the 90s Hope I helped to add context, your video was really great 💕🙌🥰
Was just about to recommend a great video to you, about Galliano, by someone called understi...😳 Don't think the Football Casuals of the late 70s and 80s hurt Burberry too much, as the media wasn't aware of them, apart from the Face. The real damage was done later by the Chavs and a septumless Eastenders actress.
Oh it hurt Burberry so incredibly, they spent many years and millions of pounds trying to shake that reputation - they even restructured their whole retailing approach (I also have a video on Burberry ahhaha)@@crankfwd8209
Great to see you here. I thought of your videos while watching this video. What do you think of Boyle's suits? Lol, I'd say his dry humor and crisp tailoring is a luxury in itself. 😂
I long ago learned that the old rich were not flaunting it. They lived simply and quietly. They had no need to impress anyone. That’s real wealth. I’ve met many who you would never realize had such resources. They were content to know they had money without sharing that with others. The people that need to have everything in ‘style’ are poorer and insecure.
This is often the truth but of course not always. I think people with the mindset to get rich often don't have the mindset to buy luxury goods, because those things are contradictory. I know someone who has just bought a half million house with his brother in his late 20s while supposedly everyone else is spending every penny renting and will never buy a house. He looks like someone with no money. He wears no watch, has no car, sprays David Beckham fragrance and wears Sports Direct.
Plus it's not uncommon for old money/very wealthy people to wear luxury brands that the average person has never heard of, but fellow very wealthy people would recognize.
Luxury isn’t about quality it’s about exclusivity. People are paying more so that they can have a product that less people can afford which makes them feel special. China's youth unemployment being ~30% will hit the sector hard as they'll lack disposable income to spend on such items. "The basic idea is that if you only focus on very rich people, you have no market." - Vincent Bastien, former LVMH CEO from 1987 to 1995. I've paraphrased it but it sill applies.
That would be true without credit, but with credit practically anyone can buy anything. When I see something like Mercedes or BMW on the road I just think the person is broke, not that they're rich.
I find it hilarious that some piece of cloth that emulates motorcycle body armor, but shreds to pieces on the pavement costs more than the real thing that has the highest tech technologies and fabrics that harden on impact. Why invest your ill gotten gains from PPP loans, when you can buy stupid luxury shit? I hate how far these loans put the honest hard worker behind everyone else, yet they still blow their money on non sustainable crap. Maybe it's a good idea to let them spend it all away, before they realize that their jump in class could be more permanent.
You make an excellent point, but society has become somewhat convinced that exclusive products like LV can now be owned by people with an ordinary salary.
Recently "luxury" has come to be associated almost entirely with exclusivity rather than quality but this is a fairly new phenomenon. In the past those two things were much more closely linked.
Some luxury goods are of higher quality than the rest of the market, think Tumi or Veraace. But most of luxury stuff are just crap for idiots, just look at the sneaker market.
My ex-wife 2007-11 was OBSESSED with luxury goods, and coerced me into spending shameful amounts. I get far more compliments than she ever did with thrift store finds (usually from the women's section) that i tailor and customize myself into a distinctive masculine style.
@@Jimbean212 or - self worth, or Both.. My neighbour spent £***'s on dog collars a few years back (which didn't last a year) then wipes the front off of her Range Rover p***d up in the middle of the day . Money can't buy peace in the soul
Honestly I'm not shocked by young people buying / flipping these things, or hoping they'll be an investment. When it feels like the economy is stacked against you, there's always a temptation to figure out a workaround, something to gamify that other people aren't taking a chance on. It may also feel like a small chance, buying a luxury item, selling it next year, etc. Though clearly not actually good investments in the long run, there's definitely a temptation to think "well next year I can flip this for double," and not even think about the long run. Even knowing you can "just" make your money back makes it feel like it's worth the risk. Think about how many people got into cryto. Not because they believed in or understood it, generally, but because they felt the need to gamble if they were going to ever get ahead in this economy. Take a risk - because that's all you've got! Etc.
The thing that sucks though is there is a workaround. Start a business in a needed industry. If you own a plumbing company you can make bank, the thing is it will be ridiculously hard. People just want easy money and that doesn't exist.
I think it speaks to Gen Zs creativity. They're very clever in finding loopholes and overlooked areas. I'll be honest, as an older person their choices don't always make sense to me, but their world is so different than mine was it feels cheap judging them too harshly.
@@hazeldavis3176 the world absolutely is different but buying luxury goods does not seem like a prudent financial investment. I wish alot of the people buying fancy handbags would instead buy boring old stocks and be prudent with money. Luxury goods seem like an expensive mistake to make, I hope the tide will shift towards more prudent investments.
I don't think it's the young thinking the economy is stacked against them as much as it's the current trend/fad/peer pressure. As an Asian American who immigrated to the US, I'm shocked at just how poor/bad most Americans are with spending and investments. Even though Asians are poorer and have lower income than Americans by far, yet Asians have savings rate lose to 10x American's pitiful 4%. It's truly shocking how Americans waste money and have no financial sense.
Luxury goods market is no longer luxury. The real luxury market has shifted, and now we have a very mid tier product bubble with excessive prices under a guise of pseudo exclusivity. It’s pathetic, gaudy, and sad
As a watch collector, I genuinely hope the bubble bursts in the near future. A departure from the "speculative collecting" mindset would not only make watches more accessible but also make it safer to actually enjoy them
@@einsam_aber_frei well, you're correct, but like they said, they're a collector, at that point, it's not really a functionality that they search (despite it's probably good to have a functional rare old watch) There's a TH-cam channel who always appears on my porch, showing off his vintage lighters in all interesting shapes and sizes, maybe watch collectors are like that too ¯\_(ツ)_/¯
I agree. I own an automatic watch, and the "advice" online is that you should never wear an automatic watch cus it'll wear out... Have these people never heard of servicing a watch? Also people saying how they buy a watch wear it for five years then throw it away cus "not worth getting it fixed". Um, agian, y'all never heard of servicing? It's literally just re-applying the grease onto the moving parts and the gems and giving it a good clean... It exists and will let your watch continue onward. Those people who don't understand you can and should service your watch are fullon nutters. And we wonder why nice watches are so expensive...
Luxury goods have transformed themselves from targeting the elite few to targeting the masses and even younger Gen Z. You can see a lot of the brands like Chanel now target audience as young as high schoolers and sponsoring a lot of K Pop idols, who these kids worship as role models. Many people especially the younger generation equates spending money on buying luxury items as attaining happiness which triumphs anything else. As society become more and more nihilistic and hedonistic, consumerism especially in the luxury segment will thrive.
You're showing your age. There have always been luxury brands that target children and the lower class. Their success has little to do with hedonism and nihilism (really, nihilism? That makes sense...).
To paraphrase a training video I was made to watch not too long ago: “Today’s belt/wallet customer is tomorrows croc bag customer” Indeed, the focus now is to convert as many young people into future big spenders. They know damn well that if a 18 year old who’s saved up for a card case has a good experience, they’ll likely come back once they’ve got jobs and disposable income.
If Nike, Adidas and other manufacturer's care to pay me, I'm more than happy to advertise their brand for them. Until then, I'll continue carrying the flag for MY tribe. The Doors!
@GGrev they're saying the watch talk helped them understand the issue Boyle was explaining. They said nothing about partaking in this themselves. Why are you being so rude?
@@notme222 as a luxury watch owner, you don't really buy them to tell the time or at least I don't. I like the engineering of a mechanical watch but it is also just man jewellery.
Since I was young, my parents gave me straight up cash instead of straight up buying the things I wanted. That made me extremely aware of the cost of things. Seeing a 'Branded' Black T-Shirt being 20 times as expensive as a normal Black T-Shirt turned my world upside down.
Hopefully there will come a point at which people will realize that something isn't necessarily worth having just because it's got a stupidly high price tag on it, and people will spend their money more wisely rather than giving it to those who need it the least in exchange for items which cost less to produce than their cheapest competitor.
As financial strain ramps up something will have to give. If sales are already starting to struggle, it’s not gonna get any better as student loans rear their ugly heads (I’m estimated to be paying 200 a month minimum). People are going to have to cut back on spending and these companies will either suffer or change to fit the market. I can’t imagine that actual rich people are going to suddenly buy more to make up for the loss of sales from this lucrative middle class. Oh well. If luxury brands struggle a bit they deserve it anyway.
I’ve noticed there are basically 2 kinds of clothing stores at a major international mall now: - fast fashion (Zara, H&M, Uniqlo) - luxury (Gucci, LV, Prada) It’s a weird experience choosing between buying a single item from Gucci (that’s not even THAT well made) vs buying 2 bags worth of fast fashion at H&M that will all start falling apart in a few months
Gucci etc is essentially cheaply made trash too, so not much different They regularly throw a lot of it away after trying to switch to something new to sell
yah ive noticed, comparing some luxury goods 100$ or 500$ price is almost same as in 90s so inflation has made that way "cheaper". that comes with shortcuts in quality.
@@Achmedsanderyes but when no one has a pineapple it’s easy to go “hey look at this rare pineapple that none of you have ever seen”. That’s not the case with a candle. The vast majority of people of any income level are not going to know that this candle cost $1150.
Yep, and they paid vast amounts to show off their pineapples for the exotic look of them. It never occurred to the insanely wealthy lords that they could actually eat them
I feel like it's bursting. The class levels have changed. Six figs has become the new middle class where 30 yrs ago it was considered more upper class. Now even at 6figs it's hard to survive let alone have enough money left over to spend on yourself. People are starting to pay more attention to the growing prices of items (necessities) due to social media. While Luxury is becoming less essential specially when you have online stores providing more affordable items.
I think you forgot to address one point. You can now pay in instalments. Social media ‘influences’ have been saying ‘if you buy a Chanel and use it a 100 times, you’ve only paid $3 per day’ lol
To be honest the people I really envy are the people who retire early to spend their life somewhere warm and sunny by the sea. That is really living! 😎🏝️
I actually just went to check because I have a good amount of booze that I bought pre-pandemic and never used. A bottle that I had to have bought for 80-150 is now $1300+ on the market.. time to sell I guess!
I worked for Best Buy when they gave employees a discount based on the cost of the product. Monster brand cables were typically 95% off. It’s not just luxury products.
What’s interesting is the demand for luxury goods is so big that many designer brand companies actually have a tiered system for their luxury products. For example, Polo Ralph Lauren has 2 tiers for their luxury goods: there’s the Polo by Ralph Lauren which is what most people know (polo shirts with the emblem on them), and then there’s Purple Label by Ralph Lauren which represents finer luxury. Many other luxury clothing brands have “sub-brands” which are much more fiscally digestible for the average consumer (McQ for Alexander McQueen, Pierre Balmain for Balmain, MICHAEL for Michael Kors, etc.) Similarly, while Mercedes Benz is a luxury car company, the base C-class Mercedes models have a similar price tag to more average-priced cars (~$40k), while their AMG line has a much steeper asking price, usually doubling or tripling the C model’s price tag. It’s interesting to see that, although many of these companies represent luxury, a majority of their product base is made and marketed for a much more general consumer base.
As a Gen X’er, I’ve bought lots of luxury goods for decades; Marc Jacobs collections and Ghesquière trunk bags for LV, Tom Ford for Gucci, Donna Karen when she ran her label herself, Escada, Prada, Chanel, Louboutin, Patek Philippe etc but since my last purchase in 2021, I’ve been turned off by everyone buying luxury like it’s H&M and everything being called luxury even when it’s plastic. I never bought items to sell or to store. I’ve always bought because I loved the item, it was unique and limited. Now we’re spending that money on home renovations and travel. PS. Most luxury items do not appreciate and never pay credit card interest on a lux item. If you have to pay for it in installments, you can’t afford it unless it’s a “same as cash” term.
@@dimplesd8931it's not a right way or a wrong way to be! Nobody should be bullied or ashamed about how they want to legally spend their hardworking money!
Thanks for the reminder that the common people can still be convinced to do idiotic things like buying normal plain white tshirts with red logos for 100x the manufacturing price. And folks, theres a difference between 'investing' and 'speculating.'
Actually, I wish Walmart still sold basic pocket-T shirts, 3 for $5, in "prison grey" (as I thought of it). I didn't like the grey, but I loved the price AND the durability. They'd have to PAY ME to wear idiot things with logos on them as I HATE such clothing.
I remember the Coach faze in the early aughts. To this day, my eye is drawn to fancy brand name purses and wallets, even though I literally don’t style myself in a way those purses would ever work. Thankfully I don’t have the funds to justify getting those purses, which has led me to understanding how much of a scam they are for the lower and even middle classes.
The business model for "Luxury goods" will always be to dilute the supply of "total" products over time, and hence the limited quota of "Prestige and luxury" attached to them. The "Market cap" for these goods (Sometimes considered assets) are a glass floor, with no support, and having never been actually tested, as there isn't ever going to be selling pressure from the purchaser thus far. This phenomenon is another manifestation of the "Greater fool" theory that will become increasingly apparent in coming times, with the current scenarios present in other areas of "Scarcity and prestige," such as Magic the Gathering cards, and CounterStrike: Global offensive items. There is near zero liquidity for resell relative to the number of holders / items.
You know CS skins have been a thing for a decade and there are no signs of slowing. As long as there are players prices will remain high simple as that. I dont think you know what you are on about
@@kehfee No they arent, go look at some price graphs for CS. Do you seriously think the skin prices will drop severely while it has tens of thousands of players still? You are out of ur mind
@@pierce9019 given that the price is entirely based on a small market trading items they think are cool then yes, even if people still play the price of any single skin can dive. This can make others dive. The whole thing is also wide open to wash trading and other manipulations to get you, the greater fool than the previous owner, to pay more and more.
some luxury goods work on very carefully curated amount released to market, selling under demand numbers on purpose and relying on that keeping the second hand market price up. once the bottom falls off it falls off though for the secondary market, people bought rolexes thinking it as an asset that goes up in price. which obviously wouldn't last if you thought about it even for a minute. lambos and stuff for a while too. so people would buy rolexes on credit card debt as an investment to flip if they managed to get a dealer to sell them one - these are not rich people like patrick says. cs skin prices will go down too if they don't limit supply and if there's no demand, duh. "You know CS skins have been a thing for a decade and there are no signs of slowing" could be directly applied to rolexes and they went down. cs:go skins are even finickier, the whole market could cease to exist though valve is somewhat at luxury to decide when they do replacement for it and drop support for it, but you can't just sit on a cs skin for 20 years. what collectibles, ingame items, high end luxury have all in common is quite simply that NOBODY ACTUALLY NEEDS THEM. if times get tough people don't buy them, it wasn't even about wearing or using them. an average income woman doesn't need a lv bag, an average income guy would only be using rolex as jewelry and not for utility(and using them for decades "from father to son" costs money too since you need to pay to keep the thing working, so it's not like you're saving money in the way you would if you just bought a really good set of spanners). the main luxury brands are safe though, they just wont be making as much money but they'll still make money.
Here in Switzerland it's the construction workers, mechanics, hotel maids and etc.. the biggest "clientele" of the Gucci and Louis Vitton stores. We call them the "Faux riches" , the fake rich people.
When I worked in Switzerland I rented a room from a girl working at cashier in supermarket and she wore Gucci Luis Vuitton on regular basis, same for her unemployed boyfriend 😂
@@samplastik13 Those are knockoffs which devalue the brand. Getting imitated is a compliment for some brands and that is understanble but getting imitated by people who only devalue your brand image is a big loss.
As a teen when I read Cosmopolitan there would be articles every few months on how and why to save up for an “investment piece” handbag. Simpler times.
This puts me in mind of the concepts put down by Veblen in his ‘Theory of the Leisure Class’. I seem to remember that the noveau riche would appropriate items that were identified with the old guard upper class and that this group in term would change its tastes.
A few lesser known luxury brands for high utility items can sometimes be worth it when they are long lasting. Tumi bags will often end up being cheaper in the long term if you need to use them regularly, and they aren’t well known enough for you to be paying much extra for the label
Yeah, I hate to admit it (as a classic cheap-skate re clothing), but there is some truth in that. Some nice brand shirt my girlfriend bought me decades ago (bugle boy) stayed PERFECT re size, shape, not losing buttons, etc. for like 20 YEARS, and I still liked it and wore it regularly. I remember some gay guy (I only mention that re him being interested in fashion vs. me being basically a cave man re fashion) complimenting me on the shirt. And me cluelessly extolling the virtues of how long the shirt had held up for decades -- and the expression on his face (as it dawned on me that he was likely interested in the fashion, not the economics). LOL
@@rogergeyer9851 The problem is it's so hard to predict. I've got an 11 year old George t-shirt which I paid £6 for, and while the shape has changed a little over time (I've slept in it countless times too), it has no holes, tears, fading or dodgy stitching. But I've also seen unevenly constructed horrible quality items from the same store and I've also got a £125 Common People overshirt which I cannot use the buttons for because within 1-3 uses the material next to the button hole comes apart.
To add about conspicuous consumption: Its what drives certain digital economies. Certain online games give out unique items as rewards, and these are often sold for real world money. Most of the time they sell only for a few dollars, but there are recorded cases of people paying a couple grand for something like a unique paint job on a digital gun. There are cases of people who were offerred even more but simply refused because they thought it unethical
Reminded me of my early days of online gaming. Sold tons of stuff before farming via lowly paid guys. maybe 30 years ago. Good ole days when ebay was still new :p. As a young guy in college. I made some good money via online gaming.
The csgo market is exactly what you’re taking about. Go with the lowest float point on any skin and you’re talking thousands for an in-game item. Factory new dragon lore AWPs go for anywhere north of 15k.
It's what drives the economies of online games that allow players to sell or transfer those rewards. You have a good point but just wanted to say...it's the unethical companies that allow it to get to the point of "a digital skin for thousands of dollars".
OTOH, shopping at places like Walmart a lot for things like cheap clothes is primarily why I retired at age 48 -- NOT by having some super-massive salary. Or keeping cars for 15 years. Or living in a cheap, simple apartment my first 30-plus years as an adult. Having idiot fancy objects is NOT the path to meaningful happiness -- but it can be the path to working into your 70's, like it or not.
Interested in how ‘luxury goods’ are being defined at the low end. E.g. a lot of bank is made by ‘luxury’ brands by producing lower-end goods like belts, hats, bags (E.g. the Burberry hat phenomenon in the UK in early 2000s) that are lower quality, higher volume but still confer status on the buyer for a lower cost.
I never really put it together till you mentioned it. But yes, I no longer think 'they're wealthy' when I see someone with a luxury purse or car. I saw a guy driving a pristine high-end Acura from the early 2000's and thought 'he must be really good with money' because to keep a car running in pristine shape like that takes money and more than that, it takes being GOOD with money. I mean even the paint was perfect, headlights perfect, thing purred like a kitten. In the same parking lot I saw a woman get out of a new G wagon and she was high as hell on meth and looked like she would shiv you for a fiver. Feel bad for Gen Z tho, they've been manipulated so hard by these giant corporations they're slaves now. Maybe Gen Alpha will reject it but who knows.
There will always be people that want to live "above" others and people who want to portray it. Conversely, as people are being affected by the current economy, they are seemingly becoming minimalist. There really isn't a reason to purchase high-priced items as they mean really nothing after you purchase them. Thank you for you content sir.
I've seen at least some "minimalism" fuel the branded goods market. With some influencers encouraging people to own less but pay more in "good quality clothing". Unfortunately many don't know what "good quality" means so they've essentially turned into high price = quality. Which isn't true at all.
Thanks Patrick. Fantastic presentation as always. I love a bit of luxury but will not spend the rent to afford a piece. I don't think there is anything wrong if you save for the goods BUT only if you can afford. Buy it because you like it. Not because you want to impress those around.
I think as far as luxury leather goods go, the lower tier vendors like Coach, MK etc. are really slowing down, but the higher end vendors like Chanel and Hermes are still selling their $6,000+ bags just fine.
There's too much of it now. I've seen more LV over the past five years than I have in my entire life before then. What used to drive the value was the fact that it was something you couldn't get anywhere. Now London, Tokyo, and New York each have ten places to buy the right brands that not too long ago were only available in ten places all across the entire planet. And Rolex has been over-producing for a very long time. Their production numbers are at around 600,00 units per year every year. And I know people in the pawn shop business. They used to pay high for the right luxury brands, but when it kept coming and coming, the used-goods prices have dropped considerably. Mercedes, Bentley, and BMW sell for a lot, but the depreciation is so vicious that what they re-sell for is pathetic to where the only time they'll ever have value is when they're now. LV, Chanel, and many other luxury brands are in danger of ending up in the same "expensive new but not worth a lot used" category as most luxury cars are in.
As long as people are gullible enough to be drawn into the trap of designer brands in the belief that it will make your life so much more amazing, people like Bernard Arnault will just keep getting richer. We're spending so much effort targeting diesel cars and yet the fashion industry- one of the biggest environmental problems- barely seems to get a mention.
Back in 2015, still at University, I opened an Ebay shop to buy and sell exclusive sneakers. That was the last year with small or no competition for raffles. By 2018 the market was full of bots creating thousands of accounts bidding up every ticket for a pair of yeezy, off white or others. Made good money between 2015-2018, after that it was almost impossible. Brands realized the power of re-launching popular models and they started releasing more and more restocks, killing most of the resale market. Tough business, but if you currently hold some yeezys, keep them, they will be x5 its current value in 10 years
@@deborahcurtis1385 Yes. If you look up to the new luxury trends in South Korea and Japan, the new trend to show social status is the absence of branding, minimalistic. Its shocking but today brands like Rolex and Louis Vuitton have more demand from the middle - low class, dying to prove status through materialistic spending rather than the rich. Specially Rolex, I know hundreds of middle income jobless people carrying real Rolex's. In the sneaker world, I find shocking that many celebrities have been spotted with. fake models of Yeezy and Nike, even them can't differentiate them anymore
The only luxury products I've bought are perfumes. Once I fell in love with the fragrance it was hard for me to replace it with a cheaper alternative. I'm glad I never branched out from there.
Social media ruined luxury brands for me because it was always the trashiest people wearing them in their posts. I’m all for quality quiet luxury and have been since before the “new craze”.
"Millenials and younger generations " like we aren't in our thirties and forties and the majority of the work force. People using it as shorthand for relatively young is going to be a thing until we're in our sixties.
nah, gen z is starting to take that place. Millennials are just the largest demographic at the moment - which means millenials will be referred to more regardless of how old they are. Because they have so much leverage over the market.
No it will start shifting towards gen z it already is it's kind of funny millennials are acting like boomers towards Gen z and don't seem to acknowledge that
@TwoDollarGararge I feel like Millenials as a cohort sort of want to pretend they aren't now the biggest older group. Boomers still have disproportionate influence but it shrinks by the day, eventually we'll have to own some of the problems we gripe about.
@@weird-guy yes American Colonies were founded by religious outcast combine that with good borders and you can see why we seek internal quasi religious crusades
While I don't own a Rolex ( or any watch for that matter ), I love the mechanical complexity and ingenuity of their design and the quality of their construction. But I also make clocks - the gears and the rest of the mechanism, so I have a special love for that sort of thing. I also love many cars and motorcycles for the same reason. Loving and respecting something for its inherent qualities rather than for any admiration that people hope to get from others are very different things and very different reasons for owning these objects.
Might I suggest you look at assembling your own watches, in that case? I've been dabbling in it and I find it quite satisfying. > Loving and respecting something for its inherent qualities rather than for any admiration that people hope to get from others are very different things and very different reasons for owning these objects. I would say they're polar opposites and that the latter leads to misery.
If I were rich, I would have everything taylor-made for me, especially shoes but also clothes and furniture. For me the idea of real luxury is having a competent craftsman manufacture something that is perfectly adapted to my body and wishes. Going around with a bag/shirt/watch with a clownishly big logo to impress acquaintances seems to me like the childish thing to do.
There is an excellent book on the transformation of classic luxury brands into the current marketplace of brand name crap we have today. It's called "Deluxe: how luxury lost its luster." Excellent book.
And that was written in the late 2000s! What’s missing from the analysis in this video is the fact that the democratization of luxury has been in motion since the late 1980s. This is not, at its core, a post-pandemic or social-media phenomenon!
I have a classic car worth ~£15k, I drive it and enjoy it. Spent about £3k on parts and insurance (if I was paying for labour it'd be more like 6k). It's a hobby and has a cost, I can't imagine it being an "investment" just parked in a garage that'd be so sad :(
My friends, who I know for a fact make the least amount of money, bought the most luxury goods. I bought a Longines for $2000 and was ridiculed. I make 180k dollars a year (converted from euros), and my friend who bought a double as expensive Rolex, is making 50k a year at most. People are buying things way outside of their league. Same thing with restaurant visits. We were invited to join friends for dinner at a restaurant. Ended up paying $220 a head for a, honeslty, mediocre quality meal at a hyped restaurant. For us this is marginal compared to our family income. The people that invited us, who go regurlarly, actually got government support to pay their energy bill. Yet they visit the luxury restaurant more than us. its crazy
@unknown-ie4hl When I was a teenager we just said "lads" - later people started saying "eshays" because kids from other suburbs didn't get what it was and just heard what was said.
I know that when i first moved out everything had to be on a shoestring budget, but, cheap stuff likes to break fast, so, whenever things break, if i could afford to, i've been upgrading and replacing to more durable, higher quality items
That makes sense for some things, but not all things. For years I bought Toyotas. Cheap AND very durable. I bought very cheap Wal-mart T-shirts and jeans which WORE LIKE IRON (as my dad used to say), but the prices were unbelievably reasonable compared to the name brand stuff. I remember upgrading from the "prison grey" Wal-mart pocket T-shirts at 3 for 5 bucks to the "nicer" ones in green and black at $2 per shirt. This was in the 80's. Not CARING whether you were in "approved fashion" helped a lot. As long as my clothing was comfortable and held up well, I was good to go. In fact, for anyone who wouldn't like me for wearing such clothes -- I wouldn't likely want them as a friend anyway -- too superficial and likely too ignorant.
@@rogergeyer9851 you call toyotas cheap but they're still leagues above the 8 year old junker that most people start out with when they need a car and don't have any money to their name really
As long as social media continue to prevail, the luxury goods market will continue to go up.... Decades ago, only ppl from the upper ranks of society spends money on luxury stuffs, the common folks don’t have the pressure to own things that they shouldn’t be owning..... But, these days, everyone is trying to get their hands on branded goods... At where I live, I’ve seen tonnes of ppl working minimum wage jobs who can’t afford Chanel bags buying Chanel lipstick, and they actually think that drug store brand lipsticks like Revlon/L’Oréal are garbage.... I’ve also seen nurses using their savings to buy Chanel handbags, I respect nurses for the contribution that they’ve made to the society, but we all know very few nurses get paid a lot for salaries.....and if they can’t get their hands on a real Chanel bag, they’ll buy the fake ones, but at the same time they’ll save every penny so that they’ll be able to afford one later on.... I’ve seen middle class ppl buying Rolex/Chanel bags thinking that the value will go up and they believe they could enjoy wearing the goods on special occasion and later on sell it for a higher price, or, they could pass it down as inheritance to their children.... Sometimes I do think I’m losing out, coz I own very few luxury items, mostly coz I can’t afford it, and mostly coz I feel the extra money should be put into the stock market/funds...
China is the real problem for the luxury good sector. Youth unemployment in China 30% will hit luxury spending massively. Problem with inverted Demand curves is that when prices start falling it becomes a vicious spiral.
Hard to say unless we know who purchases luxury goods the most, i dont think people who re affected by unemployment would have bought luxury goods anyway... the're probs living pay check to pay check even before they were unemployed :/
@@redrum4486 Well, true. Still, despite that ~30% unemployed figure, there are ~70% employed. There have certainly been some cut backs in spending overall, but with ~1 billion people here (in China), there's still a pretty penny to be made - and spent.
@@timzhang808 according to who? By my rough estimate they are losing GDP rather quickly, especially if you take out the government infrastructure projects
I worked at a liquor store throughout 2023 and finally quit recently. The amount of people who were buying Veuve cliquot, clase azul and other frankly overpriced luxury liquors that you'd see influencers spray at each other at the club who would then have to transfer money to their cashapp was absurd. The quality - cost ratio of wine falls off after like $40 for wine and like $60 for most spirits. After that you're just paying for the brand.
Loved the Kevin O'Leary bit, really made me laugh. Your delivery style is the best. Your information is very helpful and useful as well. Really love your channel
Great video. For the beginning question: how to define luxury. I found the book "The Luxury Strategy" by Kapferer and Bastien interesting. They distinguish between "normal" products, premium and super-premium and finally true luxury products. premium and super-premium, according to them, still add value in a functional sense, even if their prices rise faster per value added. Luxury products however do not add genuine functional value, instead it is more about abstract nonsense like "beauty" and "artisticallity" with which they justify their prices. Examples from the book: BMW, Mercedes = Super-premium. Rolls Royce, Koenigsegg = Luxury.
That's not true with the cars, because the Rolls and Koenigseggs add way more than a BMW and Mercedes - the lower end of which aren't even premium cars. You get what you pay for with cars to be fair - there's very little paying for the brand. A Rolls or a Koenigsegg is more expensive than a BMW for a very good reason and deservedly so, so wouldn't be a good example of what that book calls "luxury", so I'm calling that whole book bullshit, because they don't understand what they're saying.
@@David-ud9juthat is partially true. But I do not think that BMW as a whole is a luxury company nor does it market itself as such (at least in Germany). They have premium and super-premium models in their lineup, as you correctly said. However, if you were to compare the most expensive super-premium model of BMW and the most expensive model of RR or Koenigsegg, you would find fundamental differences. Those latter two brands may be better than BMW but are, objectively speaking, not that much better. Instead, what the customer buys is something "immaterial", like the beauty of an art piece. This is exactly what the book argues.
I've bought items before, telling myself that it would be worth it to keep it a while and that I'd probably be able to sell it at a greater price later. In the end I was only able to make my money back or maybe a little bit more on some of the items, probably around half...the rest of them I have had to keep stored for all this time...which has a cost attached to it. It makes moving more expensive too. Now granted these things weren't super expensive luxury items either so its hard to compare the two. But I've just felt that buying collectables and considering them an investment is risky, too risky for me, and to me it seems more like a gamble. And how can we really be sure these things are going to go up in value? We have no idea what the market is going to do in the future. Even the stock market. I've invested in plenty of stocks that were going up and then after I invested they turned around and went down instead. Just look at how the market has been changing so rapidly. Things that are in style now are probably not going to be in style for very much longer. And with new improved products coming out all the time, the market is not only oversaturated (making things less and less valuable each year) but it doesn't take long for something to get replaced by a newer better version (making them not only less valuable but obsolete). And so if you have money to burn, it might be ok to buy these things, but if you are a middle to lower class person who is looking for an investment, and buying these things on credit and putting yourself in debt with interest and really depending upon it having an ROI, well I would say it'd be much better (safer) to find a different investment. If you can't afford to lose money, be conservative, and don't do reckless things like buying expensive superfluous luxury goods to store/sell.
I am a lawyer and some of my attorney friends have commented lately about how much money I seem to have, while they are always broke. Its simple really, they drive BMW or Mercedes while I drive a Corolla, and they have Rolex while I wear a simple Longines. Thats why they are always complaining about being broke while Im always talking about my latest investments.
I wonder how many sub-categories can be found in luxury goods, like there's hyper-luxury stuff like Ferraris and whatnot, but does the tier below also enjoy the effects of being Veblen goods?
You say what I always said - only buy the expensive items if you really like them and know that you will be using them because they're not an "investment". When it comes to for example luxury bags, currently the only remaining bags that can make you some money are Hermes Kelly and Birkin and you'd need a lot of these to buy a good property from them - which is an investment. LV and Chanel is simply junk when it comes to quality and an offence to the customer's intelligence.
many people also get addicted to shopping luxury goods. I know a guy who did one of those shady one week med trials for a shitton of money (and a bunch of side effects) just to pay for his credit card debt that he uses for high brand fashion. At the same time he rents an extremely tiny place where he shares common spaces with like 8 other people. I know myself that even though I budget a lot, sometimes when I get anxiety because of how claustrophobic it can feel to have a strict budget where something unexpected happening can scramble things up, I end up relieving that stress by buying a book (which is my own go to instinctive spend). It's a result for the uncertain times we live in I think than nothing else, people look for distractions everywhere.
Several years ago my wife and I were at Fashion Island mall in orange county ca. 4 or 5 tour buses pulled up full of Japanese women. Those tourists proceeded directly to the Louis Vuitton store and bought every single item they had, including the items in the window showcases. We were out in the hallway watching the feeding frenzy. It was quite something to see. The store had to close for a week or more to get re-stocked. That was just one store in the mall. They probably cleaned out a few more.
This hit so many points in such a short amount of time. It's amazing what people blow money on. If it makes you happy and you enjoy it, that's OK, but be careful because material things don't keep you happy long
I keep wondering how can anything come down in prices when money is printed into existence by the hundreds of billions. I keep seeing economists predicting bubbles popping while money printing is still going on. The price corrections very quickly recovers. Deflation never comes in the modern monetary regime.
with all these "buy now pay later" business models and companies like affirm, klarna (I use klarna), luxury goods aren't going anywhere, anytime soon. I would argue they will continue to rise as people have an innate affinity towards exclusivity (probably spawns from insecurity) and the wanting to flex on social media, which is also growing as well.
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A lot of computer folk are having a hayday hating on asus
And I keep watching the stock rise
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When we see reports that unsold "luxury" goods are destroyed to ensure their exclusivity you realise how little their real value is.
If a rich man's private jet crashed on a deserted island his Louis Vuitton suit wouldn't be worth more than a Walmart suit. It's all worthless
Those are mostly shoes/clothes where the goods are cheap but the branding isn't. Most of the buyers are actually small time dealers auctioning them off. One 22 year old said after expenses flipping luxury shoes paid about as well as a factory job but he didn't have a boss
I had no idea they did that. What a waste. What you are really paying for is the shop itself, the location, the design. The paper bag that you walk out of the store with. They look expensive but the product themselves, its laughable. I don't get the whole LV love, to me it's just a coated canvas bag with LV all over it and a zipper.
@esterdrass4964 it's most common with clothes and shoes where most of the cost is in the branding
Technology has democratized access
Only the companies gate keep the access
"I'm told it's the highest quality, artisanal French plastic."
This gets me every time 😂
That was a genius😂😂😂
You have to pay attention every minute . Boyle will slip a zinger in there in his absolutely dead pan manner.
I say it was a sick burn, but plastic melts 😁
Bought with value less overprinted paper dollars owned by uneducated anglo saxon airheads ....You don't give away quality stuff against garbage ...it's a bad deal
It’s all excess. You’re just mammals.
I‘m a trained dressmaker. I take pride in making clothes as high quality as possible down to the things you can’t see, like interlinings or seam allowances that allow altering.
When I was still in training I took part in a project for a local fashion week event. All the visitors were covered head to toe in branded clothing, ran right past the dressmakers gilds section to the flashy stuff. Extra points for being a Chanel jacket look alike…
It was eye opening, no one was there for high quality clothing and people who claimed to love fashion had no idea what real quality meant. They fall for clever marketing just like the rest of us.
I would love to see the beautiful clothing you make and have you make dresses for me.
People are mostly looking for status symbols. It’s pathetic. If you’re actually cool, you don’t care if your shoes would gain you the most likes.
I went to somewhat upscale clothing shop about a year ago and the number of unfinished-lookong hems and polyester fabric was genuinely astounding.
Yes, but true quality will always find recognition. The lesson shouldn't be "people don't care about quality", it should be "damn, these fashion shows attract a lot more vapid normies than I thought". I'm sure there are better venues.
Yeah don't worry, there are still plenty who will appreciate master crafted goods
“It costs a lot of money to look this cheap” - Dolly Parton
Excellent quote. Perfect description of status anxiety.
@@themsmloveswar3985 One can hardly accuse Dolly Parton of status anxiety.
@@andreaandrea6716that's what they mean, Dolly Parton can wear anything and she'll still be Dolly Parton, she doesn't have to dress to impress.
@@Wohlfe Exactly.
Wicked cool
The target market of "luxury" goods is poor people pretending to be far more affluent than they actually are, and it does not seem that the world will be running out of poor people anytime soon! The sale of luxury goods is definitely helping out in that regard.
"A fool and his money are swiftly parted"
Stupidity and greed are also factors.
I think, for many it's not about appearing aflluent, it's just falling for insta and TikTok fairy tales about luxury goods being good investments.
(which is not to say that you cannot make money buying and reselling luxury goods. It's just fairly risky, and requires market insight and liquidity that most wannabe investors do not have)
I've been saying this my whole life. All that expensive stuff is just a trap to keep you poor, living paycheck to paycheck.
For me, being rich is just knowing if I lost my job I could survive for at least 6 months.
@@bruceleeharrison9284 trap? People WANT to spend it all as soon as they get it
Speaking of trainers, fairly recently in the sneaker collecting world has been growing realisation that polyurethane foam does not actually hold to long-term storage, and a lot of very expensive sneakers are literally turning to dust, worthless.
Yeah, if anything if you want shoes to be biodegradable. You want them to break down over 10 years. They're meant to be worn and thrown away.
This is leading to an even more hilarious case where people are buying a resoling particularly expensive ones the way high end car dealers trade the twisted hulks of wrecked Ferraris and then rebuild them, ship of Theseus style.
@@rathelmmc3194with how long i want to use a shoe, i wouldn't want it to break down
@@viator22 LOL! So true. Watching some videos of Porsche rebuilds your reminded that at the end of the project, only the badge and some body panels are original.
@tomlxyz you can spend $100 on some comfortable, fashionable shoes that will last a couple years and go with most outfits, or tou can spend $1000 on a pair of leather shoes that go with your formal attire and "last forever" but you still have to get resoled multiple times. You wear shoes. They get worn. Period.
“27% of luxury goods are bought by people making under $50k.”
I remember going to a coach store with my gf in the early 00s and it was chaos - like pigs at a trough. It completely changed her opinion on the brand and luxury goods in general. the idea of “style shows status” was vaporized.
The best test of luxury as status is go to a store yourself and observe the people shopping there. That’s what you’ll be associated with if you buy these things. Take that in and then make a buying decision
Oh, is Darn Tough considered a luxury brand?
If so u have been wearing them for almost 15 years now.
I hope they aren't associated with white trash.
Internet : let me introduce myself
Pigs at the trough lol
Yep people that want this stuff have no idea how trashy most of them look. They’re broadcasting a completely different image than they want
All brands are bought by plebs so why even bother.
I have an elderly friend who is a cobbler by training. I once walked with him through local high street and he started pointing out in the windows how badly made the luxury brand shoes were from a craftsman perspective. That was a fascinating perspective, albeit not a surprising one. He said he could make the best custom fit shoes I could ever hope to wear for less than half of the price of what was on display.
Personally, in a way I'm grateful LV bags and such exist though. They tell me a lot about the people who carry them. Mostly to stay well clear...
Did he tell where you should be shopping for value? I mean if one does not have access to a cobbler
@@fulaan1a lot of channels on youtube and tiktoks made custom bags and they usually attract customers by opening up LVMH products and show how much cheaper higher quality products can be made. They usually have online store too..
Personally, in a way I'm grateful comment sections on TH-cam and such exist. They tell me a lot about the people who comment. Mostly to stay well clear of judgmental ones.
@@Daria-bg3dssay it again queen
It was never about quality. That’s just a delusion people tell themselves.
Not sure why though… like, just say you want to look good, nothing wrong with that 😂
It's such a scam. I remember in my previous company a new girl got her first bonus and bought a $5,000 Chanel bag. She was back to living paycheck to paycheck after that. She wore her bag everyday for a year and it got all ratty looking. I feel bad that she fell for that scam.
She felt a million dollars while it lasted😊
Well, if she wore it every single day she really did enjoy it.
One of my favorite things to spot that instantly makes me chuckle to myself is seeing people at airports covered head to toe in designer brand and carrying branded suitcases, only to queue up for Economy.
@@cordulamsure, but if it looked ratty after one year, 5,000 dollars objectively was not worth it. My mom has had forty and fifty dollar bags from stores like kohl’s last her half a decade. She bought them because they looked nice, had a good price, and used them until they wore out. This lady bought a $5,000 bag because she wanted a status symbol, probably liked the look of it, then wore it out in a year.
@@DannyDevitoOffical-TrustMeBroExactly, my non-branded shoulder bag is still going after nearly a decade. A year is pathetic. And I carry heavy stuff in mine too.
My bag was made by an 85 year old leather worker at the top of his game. It will last the rest of my life and longer. The art on it is what I picked out along with the colors. Getting unique things made by craftspeople and paying them directly is where I put money I’m willing to spend on a luxury items. I paid him $200. Worth every penny to have something no one else has made just for me.
based
Yes, but this has nothing to do with a mass-produced bag with manufacturing cost of $80 and retail price of $1800.
They may have been made with the same materials and will both last, but in the second case, you pay not only for the bag and the craftwork but business-related expenses. I personally find the latter ridiculously unnecessary and the first more personalised and humane approach.
That old man has ruined me for anything mass produced. 😝
Nice.
more people should research to see if there's a local craftsman's guild near them. I've made wearable goods and utilitarian wood/pottery crafts for people at a fraction of the cost they'd pay online or in-store and I'm not using polyester or particle board. I've got maple just sitting in my barn waiting for someone to need a chair, bowl, cup, book case, dog house, etc. and I'm only going to charge them electric + tool maintenance + minimum wage and a 5% profit since I got the wood for free from an arborist. Have you seen how expensive a chair is? Noooo thank you.
It’s not a Patrick Boyle video without a well timed Kevin O’Leary snipe
Saw your comment before listening to it, and guessed correctly when that happened.
Because he's a smug turd.
@@emptythrone9527 has a grifter and a fraud.
@@emptythrone9527 new to the channel, why?
@@emptythrone9527probably because Kevin's a fraud
"highest quality artisanal French plastic"
it was worth getting out of bed to hear this ... whatever else happens today it is a bonus
Underrated comment!
Love Patrick's deadpan, dry humor!
Plastique
@@normamimosa5991 his humor is weapons-grade
I'm watching this while in bed
To quote my grandmother, "You can always spot the New Money because they are wearing absolutely all of it... often leveraging so that they can wear more than all of it."
That's been said forever and by way more people than your grandmother 😂
😂😂😂😂 Brilliant!
new money? hows regular salary workers doing that... thats not new money(suggesting wealth), thats just daily consumption from salaries.
@@mangos2888 My grandmother was so smart that her sayings reverberated back in time.
@@effexon Half the world population lives on less per day than the hourly minumum wage in the US. The worst salary in the West is still "wealth" if you look at global incomes.
I think it is perfectly fine to indulge in luxuries so long as you can afford it. The problem is that most people cannot afford it.
Depends a little bit on the product. If you can afford to splurge on some Le Cruset when you are young you will still be cooking with it when you are old. Meanwhile I buy inexpensive enamelware about once every five to ten years depending on the piece and how much use it sees.
I got a very small ID holder from an entry level luxury brand, and it was on sale. It's for my birthday and since I feel I have not enough space for more stuff, I wanted something special and practical. In this case, it was an indulgence I could afford.
@@thomasdahlgren1985the cheap shot doesn’t even last that long, 4 years more like.
Don't you live how you want to 😮 so let them poor people live how they want 😅
You’re shifting the responsibility on consumers, how novel
I work at a mid-size law firm that has several lawyers who bill $1,000+ an hour. Those people don't wear Gucci and Louis Vuitton. They wear Land's End and Eddie Bauer. Whenever I see someone who's covered head to toe in designer shit, I just assume they've got a lot of credit card debt and that they're stupid.
Land’s end is great stuff especially when on sale.
@@Vivian-ks7jr absolutely. Like I never consider what brand of clothes someone is wearing, I just notice how they fit and how they make the person look. That's why I buy all my clothes from Uniqlo. I like that their clothes are unbranded and I also like how they fit on me.
Money can't buy taste (case in point: Obama's summer playlists)
Patrick in this video is dressed head-to-toe in designer stuff
or they are very rich and don't care.
Fast fashion has increasingly made luxury brands even more desirable albeit the quality of the latter has declined as well. They’re playing us well.
Idk if there's a connection there. Just universal increasing commoditfication
@@tomlxyzEven if there’s no intention, the brands are clearly enjoying it.
Us? I don't participate.
@@realSethMeyers Yours and many others' mindset and self-control are admirable. But like football, which lost its allure to some, there remains enough enthusiasts to keep it rolling.
They played you well. Not me
To me, luxury goods always seemed a lot like a tax on narcissism. The main thing that needs to be corrected is that small creators need to be the producers, not the corporations. Probably the best wealth redistribution scheme out there.
It's a tax on narcissism, but the proceeds also go to narcissists. So the net impact is zero, unfortunately.
Some items have better manufacturing techniques or different manufacturing techniques that make them expensive. I think it’s also good to ask why someone bought the item that they bought. If they say something along the lines of “I saw it on social media” or “so and so has it” then they’re def on the superficial level. This also starts to paint a picture of what someone deems as luxury. As sometimes it’s not a physical thing.
Rubbish talk, another person spouting off that word if it doesn’t meet your agenda.
A quality blue chip brand watch is an asset that in increases with value over time.
Pateks, aps, some Rolexes you’ve pretty much doubled your money and more on some watches over the last 5 years
What is the asset or investments youre exposed to that has outperformed that
Another idiot throwing the word "narcissism" without understanding what it means
@TonyParker-vo4sx Have you ACTUALLY sold a used watch at a profit? If so, I’m shocked. My gf has a slew of high end watches, she went to see about selling some of them around 5 or 6 yrs ago. The only one that was actually worth anything was the Rolex and iirc, it still wasn’t that great. This is with women’s diamond watches, maybe men’s are a different story.
People like to point out the fact that the poor spend almost as much on luxuries as the rich, but they forget the fact that these stats only take into account a very specific category of luxury, mostly wearables. Poor people buy these things precisely because they are a cheap way to signal status. Rich people buy luxuries such as nicer cars and houses, which cannot be measured by these sorts of statistics.
And the middle class shop at Costco and rock kirkland clothes but own a decent house and will get to retire😅
@@stevecatpatrick8056🤣🤣🤣🤣🤣🤣🤣🤣🤣 what middle class man they don't exist
@@stevecatpatrick8056 Until money goes to assisted living and home health services because kids are not going to wipe mom's butt at 2am in the morning or stop dad's attempts to roam the neighborhood at all hours - as they see their inheritance wiped out to long term care provided by paid caregivers who are getting harder to find as Boomers desperately compete to find someone especially afterhours. That's when their adult kids stop living with their parents. When Millennials reach that age, care costs are going to really hurt. 🤑
Exactly. It's like crack. Relatively cheap to get into. Hella expensive to maintain.
@@stevecatpatrick8056love Kirkland! I have their clothes, sun glasses, wiskey, you name it 😂. Yup, I’m planning on retiring in my 50s. I don’t own any “luxury” goods and have no desire to
Just loved the deadpan “..highest quality artisanal French plastic.” 😂
One other reason for the spike in luxury goods sales during the pandemic may have been the the restrictions on travel which led to big savings on airfares etc. which many used to treat themselves to expensive personal items. As travel resumes, luxury sales may accordingly fall
luxury always do well in ''crisis'' cause people want good that makes them feel good... crisis not is good thus luxury look like a cure
true, like people spending government checks on bags and logo t shirts
You grossly overestimate the number of people that actually travel lol. Its actually all the covid money poor and young people received who have no idea what to do with their money. So they blew it on stupid shit like this.
That’s what I did. Instead of traveling those years when I was stuck in China for pandemic I bought the Gucci belt I always wanted (I just really liked the look of it). But I’ve worn it nearly everyday since for the 2 years I’ve had it so I guess it’s paid itself off?
@@lindseybarron2681 send bussy pic
Thanks for the great straight to the point hilarious content and for not using clickbait titles. I know this is just pennies for you but it's a token of appreciation. I wish there were more creators like you.
Thanks!
Amen 🙌 I am a Buddhist socialist female systems analyst that most men in my classes of '80's couldn't comprehend in California Polytechnic but had only one woman professor in the computer field that my college decided to create a degree that combined business with computers as we were to be trained to be at the top of the IT department of any company. I was 30 with last class to actually produce a punch card for a computer program for a batch processing. Nobody gives respect for intelligent woman and we still are not leaders of governments or corporations because we obtain an education but governments and business still expect women to maintain three jobs or child care and elder care while working 60 hrs every week at a company. It isn't rocket science to understand the statistics of the birth gap because my generation and younger women know the facts of TIME. A human requires specific things that additional "time" no matter what you think additional hours and days cannot be obtained with the purchase of even one so-called luxury good doesn't bring happiness but luxury goods producers hope they can convince a person to make the exchange of the person's time payment for their product when that person as a toddler should be happy without a so-called "luxury good" to impress someone else because the MARKETING now on computer software. Thank you Patrick a man of my true ❤❤❤❤🥰
@@BobCassidy Not worth
@@BobCassidy i read it not worth at all, last sentence sums up the whole thing
@@TheTctoocold what sentence? There's no sentence structure there at all
I think the demand for luxury goods in young people is driven by Instagram and tik tok influencers.
So TH-cam and Patrick aren't the key drivers? I am shocked.
Congrats, you typed a comment that was almost verbatim a line in the video, you win an iron pyrite star.
Yup and it is more often fake. I have worked with a number of them (in media) and quite a lot rent out a lambo or luxury boat for a day, get underwater on leases. Their view/sub count is often botted in hopes it will drive organic traction later (seldom works well) and they are often in breach of their contracts with brands who hire them for nonsense rates.
I think it is driven by a soul sickness that shines a bright light on how devoid of purpose, balance and sense their young existences are; empty meaningless lives. Very sad group.
Patrick says exactly this in the video
No, Patrick, you didn't inspire me to buy a 100-year-old camera. But, you did inspire me to up my game in dry wit. You're a master! Love this show!
yeah, i love those witty surprises without his even flinching
Wait, are you telling me that Louis Vitton doesn't make its bags with the highest quality, french, artisanal plastic?
@@yanggang4352 Yeah, it's a stretch.
Another example of how so much "fine art" is a scam, and the buyer should VERY much be aware.
Buying what one likes is fine, re art, but there is a HELL of a lot of decent sculpture, glass, and paintings available for well under $100, for used stuff. And I defy the vast majority of people to tell that from anything seriously valuable with similar characteristics (if it's not labeled at a gallery).
I found a great trick for collecting fancy stuff and enjoying it dirt cheap. Buy nice BOOKS full of great photographs and color plates, showing various nice stuff. I have muscle car collections, art glass collections, great vase collections, and massive collections of paintings and some nice sculpture. All contained neatly in one shelf of nice books for WELL under $1000 total, and I've gotten TREMENDOUS enjoyment from the contents with no clutter, space taken, need to buy insurance, pay taxes, and on and on.
But hey, I don't mind being a living example of Granny or Jed in "The Beverly Hillbillies", re my spending habits AND likely being happier than people who score happiness on keeping up with the Joneses and houses full of knick-knacks of "collectibles".
Just to add more context to this in terms of fashion history, LVMH began this model of big budget shows and a lot of PR attention to drive the mid-masses to buy a luxury bag of shoes in the 90s, you also said this in the video. But this was done with McQueen and Galliano in the 90s because they were the ones that made the most electric shows and became celebrities in themselves specifically for their theatricality. However, esp for Galliano, their design literally didnt matter to Arnault because they didnt need to be sold if the bags and shoes were selling (which they were). However, as this model that once was novel became the norm across the industry, too many of those entry point products like keepalls were sold and they got far too diluted, their luxury, unattainable image was tarnished. The brands started to just raise the price faster than inflation to beat that, but still, because they lost their exclusivity, they lost their desirability. This is the start of the fall of that retailing trend with brands like Hermes and Chanel trying to create a new higher luxury thats harder to actually obtain, things like Chanel shoes and Hermes bags are notoriously difficult to get, turning them into a new higher luxury that targets the top 10% of client that accounts for the lions share of sales. Thats the shift thats happening from inside the industry and why it seems like its bursting. The LVMH bubble will, but luxury wont
Also, you talked about Burberry being a victim of this and it kind of was, but not really in the way you said. The problem was that Burberry had licensed the check out to companies in Spain and Japan before the burberry check was popular. Then, following a window display that took the customer attention it got popular with their very small customer base. It was then turned into bags and umbrellas etc by mainline burberry without them anticipating their licensees would copy that idea for their own products. The licensees produced too much of the check, it got everywhere, heavily faked and burberry couldnt get out of the licensing agreements and it hurt their brand. The reason this ties into the LVMH model is because without that the general public simply wouldnt have been interested enough in luxury for it to become a motif, which in turn saw it adopted by what-we-then-called chavs who wore the check in football brawls and on holiday in europe which gave both brits and the brand a bad reputation.
It ties in, its just from an older business model which was popular in the 70s/80s, whereas the LVMH model is from the 90s
Hope I helped to add context, your video was really great 💕🙌🥰
This was a very informative and interesting read. Thank you.
Was just about to recommend a great video to you, about Galliano, by someone called understi...😳
Don't think the Football Casuals of the late 70s and 80s hurt Burberry too much, as the media wasn't aware of them, apart from the Face. The real damage was done later by the Chavs and a septumless Eastenders actress.
Oh it hurt Burberry so incredibly, they spent many years and millions of pounds trying to shake that reputation - they even restructured their whole retailing approach (I also have a video on Burberry ahhaha)@@crankfwd8209
Great to see you here. I thought of your videos while watching this video.
What do you think of Boyle's suits? Lol, I'd say his dry humor and crisp tailoring is a luxury in itself. 😂
@@zucchinigreen he is wearing Tom Ford, that adds humour to his video
I long ago learned that the old rich were not flaunting it. They lived simply and quietly.
They had no need to impress anyone. That’s real wealth.
I’ve met many who you would never realize had such resources. They were content to know they had money without sharing that with others.
The people that need to have everything in ‘style’ are poorer and insecure.
That is not true at all, but I think it's genius they've convinced you otherwise.
Stylish people are insecure ok😂 Or maybe they just know how to choose nice clothing
I think he meant the very latest hot thing.
This is often the truth but of course not always. I think people with the mindset to get rich often don't have the mindset to buy luxury goods, because those things are contradictory. I know someone who has just bought a half million house with his brother in his late 20s while supposedly everyone else is spending every penny renting and will never buy a house. He looks like someone with no money. He wears no watch, has no car, sprays David Beckham fragrance and wears Sports Direct.
Plus it's not uncommon for old money/very wealthy people to wear luxury brands that the average person has never heard of, but fellow very wealthy people would recognize.
Luxury isn’t about quality it’s about exclusivity. People are paying more so that they can have a product that less people can afford which makes them feel special. China's youth unemployment being ~30% will hit the sector hard as they'll lack disposable income to spend on such items.
"The basic idea is that if you only focus on very rich people, you have no market." - Vincent Bastien, former LVMH CEO from 1987 to 1995. I've paraphrased it but it sill applies.
That would be true without credit, but with credit practically anyone can buy anything. When I see something like Mercedes or BMW on the road I just think the person is broke, not that they're rich.
I find it hilarious that some piece of cloth that emulates motorcycle body armor, but shreds to pieces on the pavement costs more than the real thing that has the highest tech technologies and fabrics that harden on impact.
Why invest your ill gotten gains from PPP loans, when you can buy stupid luxury shit? I hate how far these loans put the honest hard worker behind everyone else, yet they still blow their money on non sustainable crap. Maybe it's a good idea to let them spend it all away, before they realize that their jump in class could be more permanent.
You make an excellent point, but society has become somewhat convinced that exclusive products like LV can now be owned by people with an ordinary salary.
Recently "luxury" has come to be associated almost entirely with exclusivity rather than quality but this is a fairly new phenomenon. In the past those two things were much more closely linked.
Some luxury goods are of higher quality than the rest of the market, think Tumi or Veraace. But most of luxury stuff are just crap for idiots, just look at the sneaker market.
My ex-wife 2007-11 was OBSESSED with luxury goods, and coerced me into spending shameful amounts. I get far more compliments than she ever did with thrift store finds (usually from the women's section) that i tailor and customize myself into a distinctive masculine style.
Tldr; your wife divorced you for being a cross dresser
nice - I love Goodwill, sometimes my outfit is 100% GW
Congratulations on your weight loss
obsession with luxury goods rings major underlying mental health issues, just my two cents.
@@Jimbean212 or - self worth, or Both.. My neighbour spent £***'s on dog collars a few years back (which didn't last a year) then wipes the front off of her Range Rover p***d up in the middle of the day . Money can't buy peace in the soul
Honestly I'm not shocked by young people buying / flipping these things, or hoping they'll be an investment. When it feels like the economy is stacked against you, there's always a temptation to figure out a workaround, something to gamify that other people aren't taking a chance on. It may also feel like a small chance, buying a luxury item, selling it next year, etc. Though clearly not actually good investments in the long run, there's definitely a temptation to think "well next year I can flip this for double," and not even think about the long run. Even knowing you can "just" make your money back makes it feel like it's worth the risk. Think about how many people got into cryto. Not because they believed in or understood it, generally, but because they felt the need to gamble if they were going to ever get ahead in this economy. Take a risk - because that's all you've got! Etc.
The thing that sucks though is there is a workaround. Start a business in a needed industry. If you own a plumbing company you can make bank, the thing is it will be ridiculously hard. People just want easy money and that doesn't exist.
100%.
I think it speaks to Gen Zs creativity. They're very clever in finding loopholes and overlooked areas. I'll be honest, as an older person their choices don't always make sense to me, but their world is so different than mine was it feels cheap judging them too harshly.
@@hazeldavis3176 the world absolutely is different but buying luxury goods does not seem like a prudent financial investment. I wish alot of the people buying fancy handbags would instead buy boring old stocks and be prudent with money. Luxury goods seem like an expensive mistake to make, I hope the tide will shift towards more prudent investments.
I don't think it's the young thinking the economy is stacked against them as much as it's the current trend/fad/peer pressure. As an Asian American who immigrated to the US, I'm shocked at just how poor/bad most Americans are with spending and investments. Even though Asians are poorer and have lower income than Americans by far, yet Asians have savings rate lose to 10x American's pitiful 4%. It's truly shocking how Americans waste money and have no financial sense.
Luxury goods market is no longer luxury. The real luxury market has shifted, and now we have a very mid tier product bubble with excessive prices under a guise of pseudo exclusivity. It’s pathetic, gaudy, and sad
As a watch collector, I genuinely hope the bubble bursts in the near future. A departure from the "speculative collecting" mindset would not only make watches more accessible but also make it safer to actually enjoy them
Actually, who needs a watch these days? You have the time on your phone and everywhere. I’m glad I don’t even need to wear a watch!
@@einsam_aber_frei
Good for you, buddy 👍
@@einsam_aber_frei well, you're correct, but like they said, they're a collector, at that point, it's not really a functionality that they search (despite it's probably good to have a functional rare old watch)
There's a TH-cam channel who always appears on my porch, showing off his vintage lighters in all interesting shapes and sizes, maybe watch collectors are like that too ¯\_(ツ)_/¯
You can always wear a Seiko, Casio, or some of the cheaper, less renowned brands.
I agree. I own an automatic watch, and the "advice" online is that you should never wear an automatic watch cus it'll wear out... Have these people never heard of servicing a watch? Also people saying how they buy a watch wear it for five years then throw it away cus "not worth getting it fixed". Um, agian, y'all never heard of servicing? It's literally just re-applying the grease onto the moving parts and the gems and giving it a good clean... It exists and will let your watch continue onward. Those people who don't understand you can and should service your watch are fullon nutters. And we wonder why nice watches are so expensive...
Luxury goods have transformed themselves from targeting the elite few to targeting the masses and even younger Gen Z. You can see a lot of the brands like Chanel now target audience as young as high schoolers and sponsoring a lot of K Pop idols, who these kids worship as role models. Many people especially the younger generation equates spending money on buying luxury items as attaining happiness which triumphs anything else. As society become more and more nihilistic and hedonistic, consumerism especially in the luxury segment will thrive.
LVMH never removed itself from its ''status brand''... they never do discount for that reason.
You're showing your age. There have always been luxury brands that target children and the lower class. Their success has little to do with hedonism and nihilism (really, nihilism? That makes sense...).
To paraphrase a training video I was made to watch not too long ago: “Today’s belt/wallet customer is tomorrows croc bag customer”
Indeed, the focus now is to convert as many young people into future big spenders.
They know damn well that if a 18 year old who’s saved up for a card case has a good experience, they’ll likely come back once they’ve got jobs and disposable income.
@@vassinaraineh? Once you become a real adult you realize it’s all nonsense for dumb kids. People usually only have a weakness for one thing
Hip hop
I HATE wearing clothes with logos or a name all over it . Glad i never fell in that trap 😂
Agreed. Plain black t shirt and no tattoos says more about being your own man than almost anything else.
Pay for the cloth and then become a billboard for the brand lol
@@timetraveler_0 so true , like a paid ( non paid ) corp sponsorship !
@@ufester27 truth !
If Nike, Adidas and other manufacturer's care to pay me, I'm more than happy to advertise their brand for them. Until then, I'll continue carrying the flag for MY tribe. The Doors!
The inclusion of watches really hit home for me. It was like explaining international finance to kids by talking about chocolate.
Then you might be the problem.
@GGrev they're saying the watch talk helped them understand the issue Boyle was explaining. They said nothing about partaking in this themselves. Why are you being so rude?
@@PointsofDatahe literally said the subject “hit home” for him, implying he’s involved in the watch market
And here I'd been thinking luxury watches might be a dying product because of the utility of smartwatches.
@@notme222 as a luxury watch owner, you don't really buy them to tell the time or at least I don't. I like the engineering of a mechanical watch but it is also just man jewellery.
Since I was young, my parents gave me straight up cash instead of straight up buying the things I wanted.
That made me extremely aware of the cost of things.
Seeing a 'Branded' Black T-Shirt being 20 times as expensive as a normal Black T-Shirt turned my world upside down.
Hopefully there will come a point at which people will realize that something isn't necessarily worth having just because it's got a stupidly high price tag on it, and people will spend their money more wisely rather than giving it to those who need it the least in exchange for items which cost less to produce than their cheapest competitor.
As financial strain ramps up something will have to give. If sales are already starting to struggle, it’s not gonna get any better as student loans rear their ugly heads (I’m estimated to be paying 200 a month minimum). People are going to have to cut back on spending and these companies will either suffer or change to fit the market. I can’t imagine that actual rich people are going to suddenly buy more to make up for the loss of sales from this lucrative middle class. Oh well. If luxury brands struggle a bit they deserve it anyway.
@@furry_homunculuscome stupid people would manage to lose all the money they won in lottery no matter how much money.
I’ve noticed there are basically 2 kinds of clothing stores at a major international mall now:
- fast fashion (Zara, H&M, Uniqlo)
- luxury (Gucci, LV, Prada)
It’s a weird experience choosing between buying a single item from Gucci (that’s not even THAT well made) vs buying 2 bags worth of fast fashion at H&M that will all start falling apart in a few months
Gucci etc is essentially cheaply made trash too, so not much different
They regularly throw a lot of it away after trying to switch to something new to sell
yah ive noticed, comparing some luxury goods 100$ or 500$ price is almost same as in 90s so inflation has made that way "cheaper". that comes with shortcuts in quality.
@@notting2640 uniqlo used to be pretty good like 5 years ago, quality recently has been poor.
One word: Uniqlo
I do have Zara trousers that I have been wearing for four years. And no, I’m in no way whatsoever related to the company.
So, buy LVMH stock, not LVMH products !
Buying luxury goods when you still have a loan to pay back, what is in people's heads ?
Who buys a 1150$ candle? Do they buy it just to show people that they can burn one grand?
In the 1800s a pineapple would cost more than a yearly salary. Rich lords would buy them just to show off. This has been happening for a long time...
@@Achmedsanderhmmm..now I'm wondering if this is why the motif of the pineapple is used in gardening, landscaping, and home decoration.
@@alexitillery7512It is indeed. The Royal Carriage is covered in gilded pineapples.
@@Achmedsanderyes but when no one has a pineapple it’s easy to go “hey look at this rare pineapple that none of you have ever seen”. That’s not the case with a candle. The vast majority of people of any income level are not going to know that this candle cost $1150.
Yep, and they paid vast amounts to show off their pineapples for the exotic look of them. It never occurred to the insanely wealthy lords that they could actually eat them
I feel like it's bursting. The class levels have changed. Six figs has become the new middle class where 30 yrs ago it was considered more upper class. Now even at 6figs it's hard to survive let alone have enough money left over to spend on yourself. People are starting to pay more attention to the growing prices of items (necessities) due to social media. While Luxury is becoming less essential specially when you have online stores providing more affordable items.
I think you forgot to address one point. You can now pay in instalments. Social media ‘influences’ have been saying ‘if you buy a Chanel and use it a 100 times, you’ve only paid $3 per day’
lol
Good point!
You’re mixing up factoring cost per use into purchases (good thing) and using buy now pay later services (bad thing).
To be honest the people I really envy are the people who retire early to spend their life somewhere warm and sunny by the sea. That is really living! 😎🏝️
I actually just went to check because I have a good amount of booze that I bought pre-pandemic and never used. A bottle that I had to have bought for 80-150 is now $1300+ on the market.. time to sell I guess!
do it quickly
Make sure that's what people are BUYING it for...not what people are hoping for. Big difference.
Sure buddy. Cool story.
@@MuppetsSh0w Macallan Concept No 1.
A friend worked for a top top lux brand and own the stuff because she said the employee discount was 90% off.
I bet they're still making profit despite 90 % discount
@@tomlxyz: Yup. I was thinking getting something for 90% off that isn't even worth 99% off is NOT a good deal.
@@deborahcurtis1385: It's not exploitation if no one is forcing them to be stupid. Stupid is on them, their greed, their vanity, etc.
99% off is not a good deal? Damn you're dumb af
I worked for Best Buy when they gave employees a discount based on the cost of the product. Monster brand cables were typically 95% off. It’s not just luxury products.
What’s interesting is the demand for luxury goods is so big that many designer brand companies actually have a tiered system for their luxury products.
For example, Polo Ralph Lauren has 2 tiers for their luxury goods: there’s the Polo by Ralph Lauren which is what most people know (polo shirts with the emblem on them), and then there’s Purple Label by Ralph Lauren which represents finer luxury. Many other luxury clothing brands have “sub-brands” which are much more fiscally digestible for the average consumer (McQ for Alexander McQueen, Pierre Balmain for Balmain, MICHAEL for Michael Kors, etc.)
Similarly, while Mercedes Benz is a luxury car company, the base C-class Mercedes models have a similar price tag to more average-priced cars (~$40k), while their AMG line has a much steeper asking price, usually doubling or tripling the C model’s price tag.
It’s interesting to see that, although many of these companies represent luxury, a majority of their product base is made and marketed for a much more general consumer base.
As a Gen X’er, I’ve bought lots of luxury goods for decades; Marc Jacobs collections and Ghesquière trunk bags for LV, Tom Ford for Gucci, Donna Karen when she ran her label herself, Escada, Prada, Chanel, Louboutin, Patek Philippe etc but since my last purchase in 2021, I’ve been turned off by everyone buying luxury like it’s H&M and everything being called luxury even when it’s plastic. I never bought items to sell or to store. I’ve always bought because I loved the item, it was unique and limited. Now we’re spending that money on home renovations and travel. PS. Most luxury items do not appreciate and never pay credit card interest on a lux item. If you have to pay for it in installments, you can’t afford it unless it’s a “same as cash” term.
As a Gen x I’ve always looked down on anyone who bought that stuff
Sounds pretentious.
@@M_SC gotta spend you money somewhere… but you’re right. I was a pompous ass then as were my friends. We were “Sex and the City” wannabes. 😂
@@dimplesd8931it's not a right way or a wrong way to be! Nobody should be bullied or ashamed about how they want to legally spend their hardworking money!
They are becoming common to own one.
Thanks for the reminder that the common people can still be convinced to do idiotic things like buying normal plain white tshirts with red logos for 100x the manufacturing price.
And folks, theres a difference between 'investing' and 'speculating.'
Actually, I wish Walmart still sold basic pocket-T shirts, 3 for $5, in "prison grey" (as I thought of it). I didn't like the grey, but I loved the price AND the durability.
They'd have to PAY ME to wear idiot things with logos on them as I HATE such clothing.
I got the urge to buy finance textbooks by watching your videos
you and me both!
People who pretend to be wealth why the Kevin O'Leary photo😂
I’ve known people who convinced themselves that silly luxury items were investments.
Not once have I known it to work out well.
I remember the Coach faze in the early aughts. To this day, my eye is drawn to fancy brand name purses and wallets, even though I literally don’t style myself in a way those purses would ever work. Thankfully I don’t have the funds to justify getting those purses, which has led me to understanding how much of a scam they are for the lower and even middle classes.
The business model for "Luxury goods" will always be to dilute the supply of "total" products over time, and hence the limited quota of "Prestige and luxury" attached to them. The "Market cap" for these goods (Sometimes considered assets) are a glass floor, with no support, and having never been actually tested, as there isn't ever going to be selling pressure from the purchaser thus far.
This phenomenon is another manifestation of the "Greater fool" theory that will become increasingly apparent in coming times, with the current scenarios present in other areas of "Scarcity and prestige," such as Magic the Gathering cards, and CounterStrike: Global offensive items.
There is near zero liquidity for resell relative to the number of holders / items.
You know CS skins have been a thing for a decade and there are no signs of slowing. As long as there are players prices will remain high simple as that. I dont think you know what you are on about
@@pierce9019 No they're right
@@kehfee No they arent, go look at some price graphs for CS. Do you seriously think the skin prices will drop severely while it has tens of thousands of players still? You are out of ur mind
@@pierce9019 given that the price is entirely based on a small market trading items they think are cool then yes, even if people still play the price of any single skin can dive. This can make others dive. The whole thing is also wide open to wash trading and other manipulations to get you, the greater fool than the previous owner, to pay more and more.
some luxury goods work on very carefully curated amount released to market, selling under demand numbers on purpose and relying on that keeping the second hand market price up.
once the bottom falls off it falls off though for the secondary market, people bought rolexes thinking it as an asset that goes up in price. which obviously wouldn't last if you thought about it even for a minute. lambos and stuff for a while too. so people would buy rolexes on credit card debt as an investment to flip if they managed to get a dealer to sell them one - these are not rich people like patrick says.
cs skin prices will go down too if they don't limit supply and if there's no demand, duh.
"You know CS skins have been a thing for a decade and there are no signs of slowing" could be directly applied to rolexes and they went down. cs:go skins are even finickier, the whole market could cease to exist though valve is somewhat at luxury to decide when they do replacement for it and drop support for it, but you can't just sit on a cs skin for 20 years.
what collectibles, ingame items, high end luxury have all in common is quite simply that NOBODY ACTUALLY NEEDS THEM. if times get tough people don't buy them, it wasn't even about wearing or using them. an average income woman doesn't need a lv bag, an average income guy would only be using rolex as jewelry and not for utility(and using them for decades "from father to son" costs money too since you need to pay to keep the thing working, so it's not like you're saving money in the way you would if you just bought a really good set of spanners).
the main luxury brands are safe though, they just wont be making as much money but they'll still make money.
Here in Switzerland it's the construction workers, mechanics, hotel maids and etc.. the biggest "clientele" of the Gucci and Louis Vitton stores. We call them the "Faux riches" , the fake rich people.
És tu
I thought basic necessities were already expensive in Switzerland. I would have thought the average Swiss wouldn't bother with luxury goods.
Low self-esteem . Lol
When I worked in Switzerland I rented a room from a girl working at cashier in supermarket and she wore Gucci Luis Vuitton on regular basis, same for her unemployed boyfriend 😂
@@samplastik13 Those are knockoffs which devalue the brand. Getting imitated is a compliment for some brands and that is understanble but getting imitated by people who only devalue your brand image is a big loss.
Social class anxiety is a real thing. I wasted a lot of money before realizing it had happened to myself.
As a teen when I read Cosmopolitan there would be articles every few months on how and why to save up for an “investment piece” handbag. Simpler times.
I learned my lesson with pokemon cards and mowing lawns.
@@hypothalapotamus5293 And what was it?
@@GreenLeafUponTheSkyInvesting in objects (especially cars, handbags, watches, purses etc which all depreciate in value) is usually a bad idea.
This puts me in mind of the concepts put down by Veblen in his ‘Theory of the Leisure Class’. I seem to remember that the noveau riche would appropriate items that were identified with the old guard upper class and that this group in term would change its tastes.
In other words, the Sneeches from Doctor Suess.
Veblen is another socialist fraudster and another redistributor of other people's wealth and income.
The irony being that wealth was not insulating the upper crust from having to play the status game dictated by lower rungs.
A few lesser known luxury brands for high utility items can sometimes be worth it when they are long lasting. Tumi bags will often end up being cheaper in the long term if you need to use them regularly, and they aren’t well known enough for you to be paying much extra for the label
The thing about fashion products is that the often become unfashionable before they wear out.
@@Achmedsander that is very true. Especially with a lot of the statement pieces people will buy from a lot of luxury brands
Yeah, I hate to admit it (as a classic cheap-skate re clothing), but there is some truth in that. Some nice brand shirt my girlfriend bought me decades ago (bugle boy) stayed PERFECT re size, shape, not losing buttons, etc. for like 20 YEARS, and I still liked it and wore it regularly.
I remember some gay guy (I only mention that re him being interested in fashion vs. me being basically a cave man re fashion) complimenting me on the shirt. And me cluelessly extolling the virtues of how long the shirt had held up for decades -- and the expression on his face (as it dawned on me that he was likely interested in the fashion, not the economics). LOL
You sound like a complete douche
@@rogergeyer9851 The problem is it's so hard to predict. I've got an 11 year old George t-shirt which I paid £6 for, and while the shape has changed a little over time (I've slept in it countless times too), it has no holes, tears, fading or dodgy stitching. But I've also seen unevenly constructed horrible quality items from the same store and I've also got a £125 Common People overshirt which I cannot use the buttons for because within 1-3 uses the material next to the button hole comes apart.
To add about conspicuous consumption: Its what drives certain digital economies. Certain online games give out unique items as rewards, and these are often sold for real world money. Most of the time they sell only for a few dollars, but there are recorded cases of people paying a couple grand for something like a unique paint job on a digital gun. There are cases of people who were offerred even more but simply refused because they thought it unethical
Reminded me of my early days of online gaming. Sold tons of stuff before farming via lowly paid guys. maybe 30 years ago. Good ole days when ebay was still new :p. As a young guy in college. I made some good money via online gaming.
The csgo market is exactly what you’re taking about. Go with the lowest float point on any skin and you’re talking thousands for an in-game item. Factory new dragon lore AWPs go for anywhere north of 15k.
It's what drives the economies of online games that allow players to sell or transfer those rewards. You have a good point but just wanted to say...it's the unethical companies that allow it to get to the point of "a digital skin for thousands of dollars".
I've always found it so stupid to just buy something in game with real money, like why do you even play
@@tomlxyz Trophy items and competitive advantages
That elon pic 🤣🤣🤣. Even funnier when Patrick uses it
The Lone Mush.
Also, Walmart is reporting a rise in ”higher income“ customers. That sure isn’t a sign of an economy that feels like spending.
OTOH, shopping at places like Walmart a lot for things like cheap clothes is primarily why I retired at age 48 -- NOT by having some super-massive salary. Or keeping cars for 15 years. Or living in a cheap, simple apartment my first 30-plus years as an adult.
Having idiot fancy objects is NOT the path to meaningful happiness -- but it can be the path to working into your 70's, like it or not.
Interested in how ‘luxury goods’ are being defined at the low end.
E.g. a lot of bank is made by ‘luxury’ brands by producing lower-end goods like belts, hats, bags (E.g. the Burberry hat phenomenon in the UK in early 2000s) that are lower quality, higher volume but still confer status on the buyer for a lower cost.
Luxury goods have been replaced (Or perhaps augmented) by luxury brands. Anyone remember that insane "SUPREME" nonsense?
I never really put it together till you mentioned it. But yes, I no longer think 'they're wealthy' when I see someone with a luxury purse or car.
I saw a guy driving a pristine high-end Acura from the early 2000's and thought 'he must be really good with money' because to keep a car running in pristine shape like that takes money and more than that, it takes being GOOD with money. I mean even the paint was perfect, headlights perfect, thing purred like a kitten.
In the same parking lot I saw a woman get out of a new G wagon and she was high as hell on meth and looked like she would shiv you for a fiver.
Feel bad for Gen Z tho, they've been manipulated so hard by these giant corporations they're slaves now. Maybe Gen Alpha will reject it but who knows.
That’s awfully presumptuous of you to accuse that stranger of being on meth. You don’t know a single thing about her.
Gen Alpha will get f♪§♫ed even harder.
There will always be people that want to live "above" others and people who want to portray it. Conversely, as people are being affected by the current economy, they are seemingly becoming minimalist. There really isn't a reason to purchase high-priced items as they mean really nothing after you purchase them. Thank you for you content sir.
I've seen at least some "minimalism" fuel the branded goods market. With some influencers encouraging people to own less but pay more in "good quality clothing". Unfortunately many don't know what "good quality" means so they've essentially turned into high price = quality. Which isn't true at all.
Thanks Patrick. Fantastic presentation as always. I love a bit of luxury but will not spend the rent to afford a piece. I don't think there is anything wrong if you save for the goods BUT only if you can afford. Buy it because you like it. Not because you want to impress those around.
I think as far as luxury leather goods go, the lower tier vendors like Coach, MK etc. are really slowing down, but the higher end vendors like Chanel and Hermes are still selling their $6,000+ bags just fine.
There's too much of it now. I've seen more LV over the past five years than I have in my entire life before then. What used to drive the value was the fact that it was something you couldn't get anywhere. Now London, Tokyo, and New York each have ten places to buy the right brands that not too long ago were only available in ten places all across the entire planet. And Rolex has been over-producing for a very long time. Their production numbers are at around 600,00 units per year every year. And I know people in the pawn shop business. They used to pay high for the right luxury brands, but when it kept coming and coming, the used-goods prices have dropped considerably. Mercedes, Bentley, and BMW sell for a lot, but the depreciation is so vicious that what they re-sell for is pathetic to where the only time they'll ever have value is when they're now. LV, Chanel, and many other luxury brands are in danger of ending up in the same "expensive new but not worth a lot used" category as most luxury cars are in.
As long as people are gullible enough to be drawn into the trap of designer brands in the belief that it will make your life so much more amazing, people like Bernard Arnault will just keep getting richer.
We're spending so much effort targeting diesel cars and yet the fashion industry- one of the biggest environmental problems- barely seems to get a mention.
Back in 2015, still at University, I opened an Ebay shop to buy and sell exclusive sneakers. That was the last year with small or no competition for raffles. By 2018 the market was full of bots creating thousands of accounts bidding up every ticket for a pair of yeezy, off white or others. Made good money between 2015-2018, after that it was almost impossible. Brands realized the power of re-launching popular models and they started releasing more and more restocks, killing most of the resale market. Tough business, but if you currently hold some yeezys, keep them, they will be x5 its current value in 10 years
@@deborahcurtis1385 Yes. If you look up to the new luxury trends in South Korea and Japan, the new trend to show social status is the absence of branding, minimalistic. Its shocking but today brands like Rolex and Louis Vuitton have more demand from the middle - low class, dying to prove status through materialistic spending rather than the rich. Specially Rolex, I know hundreds of middle income jobless people carrying real Rolex's. In the sneaker world, I find shocking that many celebrities have been spotted with. fake models of Yeezy and Nike, even them can't differentiate them anymore
The only luxury products I've bought are perfumes. Once I fell in love with the fragrance it was hard for me to replace it with a cheaper alternative. I'm glad I never branched out from there.
FragranceVault sells "copies" without the branding. It's cheaper. Smells the same 😁
Social media ruined luxury brands for me because it was always the trashiest people wearing them in their posts. I’m all for quality quiet luxury and have been since before the “new craze”.
A 1k candle shook me to the core
"Millenials and younger generations " like we aren't in our thirties and forties and the majority of the work force. People using it as shorthand for relatively young is going to be a thing until we're in our sixties.
nah, gen z is starting to take that place. Millennials are just the largest demographic at the moment - which means millenials will be referred to more regardless of how old they are. Because they have so much leverage over the market.
No it will start shifting towards gen z it already is it's kind of funny millennials are acting like boomers towards Gen z and don't seem to acknowledge that
@TwoDollarGararge I feel like Millenials as a cohort sort of want to pretend they aren't now the biggest older group. Boomers still have disproportionate influence but it shrinks by the day, eventually we'll have to own some of the problems we gripe about.
Or until y'all adult.
@@weird-guy yes American Colonies were founded by religious outcast combine that with good borders and you can see why we seek internal quasi religious crusades
While I don't own a Rolex ( or any watch for that matter ), I love the mechanical complexity and ingenuity of their design and the quality of their construction. But I also make clocks - the gears and the rest of the mechanism, so I have a special love for that sort of thing. I also love many cars and motorcycles for the same reason. Loving and respecting something for its inherent qualities rather than for any admiration that people hope to get from others are very different things and very different reasons for owning these objects.
You make clocks but don't own a watch? Interesting.
@@marktovey273 th-cam.com/video/Mimuk5yz5Ss/w-d-xo.html
Might I suggest you look at assembling your own watches, in that case? I've been dabbling in it and I find it quite satisfying.
> Loving and respecting something for its inherent qualities rather than for any admiration that people hope to get from others are very different things and very different reasons for owning these objects.
I would say they're polar opposites and that the latter leads to misery.
@@marktovey273 they don't own a _Rolex_
@@PointsofData or "any watch for that matter"
If I were rich, I would have everything taylor-made for me, especially shoes but also clothes and furniture.
For me the idea of real luxury is having a competent craftsman manufacture something that is perfectly adapted to my body and wishes.
Going around with a bag/shirt/watch with a clownishly big logo to impress acquaintances seems to me like the childish thing to do.
Me too! If I was rick, I'd have *everything* custom made for me!
*rich
Shoes especially. Shoes never fit me properly. Weird feet I guess.
"Manias, Panics, and Crashes" on the desk is a nice detail considering the topic of the video
There is an excellent book on the transformation of classic luxury brands into the current marketplace of brand name crap we have today. It's called "Deluxe: how luxury lost its luster." Excellent book.
Cool thanks, I’ll check this out
And that was written in the late 2000s! What’s missing from the analysis in this video is the fact that the democratization of luxury has been in motion since the late 1980s. This is not, at its core, a post-pandemic or social-media phenomenon!
I have a classic car worth ~£15k, I drive it and enjoy it. Spent about £3k on parts and insurance (if I was paying for labour it'd be more like 6k). It's a hobby and has a cost, I can't imagine it being an "investment" just parked in a garage that'd be so sad :(
I have the same reaction to pristine antique toy cars - a child should have been given the toy and played with it till the wheels came off.
It's a car. It's supposed to be used.
My friends, who I know for a fact make the least amount of money, bought the most luxury goods.
I bought a Longines for $2000 and was ridiculed.
I make 180k dollars a year (converted from euros), and my friend who bought a double as expensive Rolex, is making 50k a year at most.
People are buying things way outside of their league.
Same thing with restaurant visits.
We were invited to join friends for dinner at a restaurant.
Ended up paying $220 a head for a, honeslty, mediocre quality meal at a hyped restaurant.
For us this is marginal compared to our family income.
The people that invited us, who go regurlarly, actually got government support to pay their energy bill.
Yet they visit the luxury restaurant more than us.
its crazy
I’m curious. What do you do for a living?
@@DisposableSupervillainHenchman I manage a department of 120 people for a financial institution
@@DutchManticore Interesting. $180k a year is no joke.
we're not living on the same planet. I don't pay more than 2 euros for a tshirt and I use my phone to tell time (phone that cost me 100 euros)
Do your poorer friends finance all this stuff?
The "chav" thing also happened in Australia, with ratboys wearing: Louis Vitton, Ralph Lauren, Nautica. They're seen as cheap/tacky as a result.
Lol we call them 'eshays' in aus😅
@unknown-ie4hl When I was a teenager we just said "lads" - later people started saying "eshays" because kids from other suburbs didn't get what it was and just heard what was said.
I know that when i first moved out everything had to be on a shoestring budget, but, cheap stuff likes to break fast, so, whenever things break, if i could afford to, i've been upgrading and replacing to more durable, higher quality items
That makes sense for some things, but not all things. For years I bought Toyotas. Cheap AND very durable. I bought very cheap Wal-mart T-shirts and jeans which WORE LIKE IRON (as my dad used to say), but the prices were unbelievably reasonable compared to the name brand stuff.
I remember upgrading from the "prison grey" Wal-mart pocket T-shirts at 3 for 5 bucks to the "nicer" ones in green and black at $2 per shirt. This was in the 80's.
Not CARING whether you were in "approved fashion" helped a lot. As long as my clothing was comfortable and held up well, I was good to go. In fact, for anyone who wouldn't like me for wearing such clothes -- I wouldn't likely want them as a friend anyway -- too superficial and likely too ignorant.
@@rogergeyer9851 you're right. I'm mostly talking about furniture, household electronics and kitchenwear. Clothes are a major exception
@@rogergeyer9851 you call toyotas cheap but they're still leagues above the 8 year old junker that most people start out with when they need a car and don't have any money to their name really
As long as social media continue to prevail, the luxury goods market will continue to go up....
Decades ago, only ppl from the upper ranks of society spends money on luxury stuffs, the common folks don’t have the pressure to own things that they shouldn’t be owning.....
But, these days, everyone is trying to get their hands on branded goods...
At where I live, I’ve seen tonnes of ppl working minimum wage jobs who can’t afford Chanel bags buying Chanel lipstick, and they actually think that drug store brand lipsticks like Revlon/L’Oréal are garbage....
I’ve also seen nurses using their savings to buy Chanel handbags, I respect nurses for the contribution that they’ve made to the society, but we all know very few nurses get paid a lot for salaries.....and if they can’t get their hands on a real Chanel bag, they’ll buy the fake ones, but at the same time they’ll save every penny so that they’ll be able to afford one later on....
I’ve seen middle class ppl buying Rolex/Chanel bags thinking that the value will go up and they believe they could enjoy wearing the goods on special occasion and later on sell it for a higher price, or, they could pass it down as inheritance to their children....
Sometimes I do think I’m losing out, coz I own very few luxury items, mostly coz I can’t afford it, and mostly coz I feel the extra money should be put into the stock market/funds...
China is the real problem for the luxury good sector. Youth unemployment in China 30% will hit luxury spending massively. Problem with inverted Demand curves is that when prices start falling it becomes a vicious spiral.
Hard to say unless we know who purchases luxury goods the most, i dont think people who re affected by unemployment would have bought luxury goods anyway... the're probs living pay check to pay check even before they were unemployed :/
@@redrum4486 Well, true.
Still, despite that ~30% unemployed figure, there are ~70% employed.
There have certainly been some cut backs in spending overall, but with ~1 billion people here (in China), there's still a pretty penny to be made - and spent.
Despite the youth unemployment, China had GDP growth of 5.5% for the first half of this year.
@@timzhang808 according to who?
By my rough estimate they are losing GDP rather quickly, especially if you take out the government infrastructure projects
@@timzhang808 or so they/china says...
I knew it, the camera was never my fault. Damn you Boyle
I worked at a liquor store throughout 2023 and finally quit recently. The amount of people who were buying Veuve cliquot, clase azul and other frankly overpriced luxury liquors that you'd see influencers spray at each other at the club who would then have to transfer money to their cashapp was absurd. The quality - cost ratio of wine falls off after like $40 for wine and like $60 for most spirits. After that you're just paying for the brand.
Loved the Kevin O'Leary bit, really made me laugh. Your delivery style is the best. Your information is very helpful and useful as well. Really love your channel
Great video. For the beginning question: how to define luxury.
I found the book "The Luxury Strategy" by Kapferer and Bastien interesting. They distinguish between "normal" products, premium and super-premium and finally true luxury products.
premium and super-premium, according to them, still add value in a functional sense, even if their prices rise faster per value added. Luxury products however do not add genuine functional value, instead it is more about abstract nonsense like "beauty" and "artisticallity" with which they justify their prices.
Examples from the book: BMW, Mercedes = Super-premium. Rolls Royce, Koenigsegg = Luxury.
That's not true with the cars, because the Rolls and Koenigseggs add way more than a BMW and Mercedes - the lower end of which aren't even premium cars. You get what you pay for with cars to be fair - there's very little paying for the brand. A Rolls or a Koenigsegg is more expensive than a BMW for a very good reason and deservedly so, so wouldn't be a good example of what that book calls "luxury", so I'm calling that whole book bullshit, because they don't understand what they're saying.
@@David-ud9juthat is partially true. But I do not think that BMW as a whole is a luxury company nor does it market itself as such (at least in Germany). They have premium and super-premium models in their lineup, as you correctly said.
However, if you were to compare the most expensive super-premium model of BMW and the most expensive model of RR or Koenigsegg, you would find fundamental differences. Those latter two brands may be better than BMW but are, objectively speaking, not that much better. Instead, what the customer buys is something "immaterial", like the beauty of an art piece. This is exactly what the book argues.
I've bought items before, telling myself that it would be worth it to keep it a while and that I'd probably be able to sell it at a greater price later. In the end I was only able to make my money back or maybe a little bit more on some of the items, probably around half...the rest of them I have had to keep stored for all this time...which has a cost attached to it. It makes moving more expensive too. Now granted these things weren't super expensive luxury items either so its hard to compare the two. But I've just felt that buying collectables and considering them an investment is risky, too risky for me, and to me it seems more like a gamble. And how can we really be sure these things are going to go up in value? We have no idea what the market is going to do in the future. Even the stock market. I've invested in plenty of stocks that were going up and then after I invested they turned around and went down instead. Just look at how the market has been changing so rapidly. Things that are in style now are probably not going to be in style for very much longer. And with new improved products coming out all the time, the market is not only oversaturated (making things less and less valuable each year) but it doesn't take long for something to get replaced by a newer better version (making them not only less valuable but obsolete). And so if you have money to burn, it might be ok to buy these things, but if you are a middle to lower class person who is looking for an investment, and buying these things on credit and putting yourself in debt with interest and really depending upon it having an ROI, well I would say it'd be much better (safer) to find a different investment. If you can't afford to lose money, be conservative, and don't do reckless things like buying expensive superfluous luxury goods to store/sell.
Love your eloquent & cohesive commentary (and humor) Thanks!
I am a lawyer and some of my attorney friends have commented lately about how much money I seem to have, while they are always broke. Its simple really, they drive BMW or Mercedes while I drive a Corolla, and they have Rolex while I wear a simple Longines. Thats why they are always complaining about being broke while Im always talking about my latest investments.
Loololol thats why law and medicine are not in the list of top 10 careers that create millionaires. Looks like u are an exception
11:42 "spend to impress" and "no one really notices". Sums its up so precisely.
I wonder how many sub-categories can be found in luxury goods, like there's hyper-luxury stuff like Ferraris and whatnot, but does the tier below also enjoy the effects of being Veblen goods?
@@weird-guy Loro Piana is high end - one of these so-called 'quiet luxury' brands that have been talked and written about online.
You say what I always said - only buy the expensive items if you really like them and know that you will be using them because they're not an "investment". When it comes to for example luxury bags, currently the only remaining bags that can make you some money are Hermes Kelly and Birkin and you'd need a lot of these to buy a good property from them - which is an investment. LV and Chanel is simply junk when it comes to quality and an offence to the customer's intelligence.
The first video I have watched on your channel and it is great! As a watch collector (and wearer) I can not wait for prices to go down
many people also get addicted to shopping luxury goods. I know a guy who did one of those shady one week med trials for a shitton of money (and a bunch of side effects) just to pay for his credit card debt that he uses for high brand fashion. At the same time he rents an extremely tiny place where he shares common spaces with like 8 other people.
I know myself that even though I budget a lot, sometimes when I get anxiety because of how claustrophobic it can feel to have a strict budget where something unexpected happening can scramble things up, I end up relieving that stress by buying a book (which is my own go to instinctive spend). It's a result for the uncertain times we live in I think than nothing else, people look for distractions everywhere.
Several years ago my wife and I were at Fashion Island mall in orange county ca. 4 or 5 tour buses pulled up full of Japanese women. Those tourists proceeded directly to the Louis Vuitton store and bought every single item they had, including the items in the window showcases. We were out in the hallway watching the feeding frenzy. It was quite something to see. The store had to close for a week or more to get re-stocked. That was just one store in the mall. They probably cleaned out a few more.
Because those will flip for chicken tenders in Shibuya so that makes sense.
This hit so many points in such a short amount of time. It's amazing what people blow money on. If it makes you happy and you enjoy it, that's OK, but be careful because material things don't keep you happy long
“Crypto Bros are no longer buying high spec corollas.” 😂 Sir, you killed it!
I keep wondering how can anything come down in prices when money is printed into existence by the hundreds of billions.
I keep seeing economists predicting bubbles popping while money printing is still going on. The price corrections very quickly recovers. Deflation never comes in the modern monetary regime.
My first time watching your channel but I really enjoyed the heavy use of data rather than just opinion. Thanks!
with all these "buy now pay later" business models and companies like affirm, klarna (I use klarna), luxury goods aren't going anywhere, anytime soon. I would argue they will continue to rise as people have an innate affinity towards exclusivity (probably spawns from insecurity) and the wanting to flex on social media, which is also growing as well.