Luxury brands such as Louis Vuitton and Gucci are experiencing a decline in sales as luxury buyers prefer to purchase non-branded merchandise as they are concerned with flaunting their wealth.Instead,they are purchasing luxury brands that do not feature the brands logo on the product.This trend is related to the fact that high income consumers have increased their wealth in the last several years while middle-income earners' wealth has declined.The decline in sales for Louis Vuitton and Gucci is related to the ________ environmental influence.

Question

Quizplus · Accepted Answer

The decline in sales for Louis Vuitton and Gucci is related to the social-cultural environmental influence. The trend of purchasing non-branded luxury merchandise reflects a shift in values and attitudes towards conspicuous consumption among high-income consumers. They are now more concerned with displaying their taste and sophistication, rather than flaunting their wealth through branded luxury items. This trend is also driven by a desire for individuality and personalization, which is a social-cultural factor.

Luxury Brands Such as Louis Vuitton and Gucci Are Experiencing