Abstract
Luxury industry has been around for a long time and its origin could be traced to early 18th century, it is mainly established in Italy around the region in Europe, the main companies are controlled by families and mostly by the fifth generation. The main problem faced by this industry in Asia is its difficulty to adapt to the customers who have a high desire but lacking sufficient income to purchase their products. The main objectives of this study were: i) to examine the developments, problems and various challenges faced by the luxury Industry ii) to explore the adaptation of the Industry to the changes in the customer tastes and preferences, iii) to identify the generational change of Gen X to Millennials in preference for luxury goods and iv) to find out the association between demographic variables and frequency of purchase of luxury goods. In order to fulfill the objectives, the primary data was collected from 181 respondents from different age groups in and around Bengaluru city in state of Karnataka using convenient sampling method. The secondary data was collected from the financial statements of three companies that have global existence between 2009 and 2019. This research will help comparison of the luxury Industry in Europe with the rest of the world; it will also be useful for companies to help develop their strategies so as to achieve a competitive edge within the industry.
Keywords: developments, generalization, gen X, luxury Industry, millennials.
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