Friday, August 10, 2007

High up

Do we really view extravagant prices as just another fact of life? Are we buying pricey luxury goods to prove to the world that yes, we do have the money (and hence the status and worth) to consume them? According to NYT, then yes! We do- with the increased profits of LVMH, Gucci group and the Prada group as proof. If you ask for my answer, I'll say yes to the first question and uncertain for the second. I'm going to call our immunity to the price tag the department store shopper's habituation syndrome. Happens all the time. You shop at those nice calm beautiful department stores like Barney's for a few hours and come out being able to justify a $200 Tshirt as a bargain. Our motives to buy luxury goods, however, goes a bit deeper than that... because it really depends on how secure we are socially. I mean, I like designers because of the quality (If a high end brand doesn't the quality, I won't buy it!) and (obviously) the design... from the avant-garde and the intricately designed to absolute classics like Chanel and Hermès. Others might want to feel the satisfaction of knowing they 'fit' into a certain 'elite' because of it. Or maybe, it's just expected as part of the job description.

And the dollar plays a part in affecting these imports. I know the Australian dollar is on my side at the moment. The US dollar not so well, I know. It always seems to have this flip side- the two dollars head in opposite directions. Strong USD means a weak AUD and vice versa. The AUD has been doing smashingly well and very very strong.
1 AUD = 0.8582 USD.
Does that mean I should be spending more? (I sure hope so... )
Cred: NYT

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