Is Fashion Luxury a good investment?

best-luxury-fashion-brands-u1

Is Fashion Luxury a good investment?

FASHION BUSINESS TIPS

Luxury brands exemplify the concept of wealth, high fashion, extravagance, and, of course, the exclusivity of possession which can only be accorded to individuals that are considered to be part of the “elite” of our present-day society

Of course, they do not seek to serve the masses. Instead, they want their products to be expensive and scarce.

It is due to this that possession of such brands is seen as a status symbol by many due to the extravagant prices these items are usually worth

Further analysis of the domestic luxury market in Nigeria by Ivypanda reveals that it is currently worth $213 million with a 10 to 15 percent increase in domestic sales expected over the next five years based on sales forecasts.

Why Luxury goods can be an excellent long-term investment

There are many things to like about luxury goods companies.

For starters, many have compelling brands. Take Louis Vuitton, for example, which is the largest luxury brand company in the world.

A strong brand is a competitive advantage, as it creates customer loyalty. Consumers are willing to go the extra mile to get hold of a brand name they love.

A dominant brand also means pricing power. Unlike companies that sell necessities, luxury goods companies can raise their prices because they are confident that their deep-pocketed customers will be happy to pay up.

Rolex, for instance, increased prices on many of its stainless steel watches by 10% or more in early 2022.
This kind of pricing power can potentially guard against inflation, which is currently negatively affecting other areas of the retail industry.

Finally, companies that sell luxury goods also tend to be quite resilient in a harsh economy. This is illustrated by the fact that in 2020, around half of the top 100 luxury goods companies globally remained profitable.

Of course, demand for luxury products can decline when economic conditions deteriorate.

However, compared to other areas of the retail industry, luxury brands keep making sales.

One reason for this is that affluent individuals typically aren’t affected as much by economic downturns.

As a result of all these, luxury goods stocks have generated strong returns for investors in the past and Luxury brands companies look set to enjoy strong tailwinds in the years ahead.

Those who seek to source luxury fashion visit Fazsion warehouse at 77, Opebi Road, Ikeja. or Call Fazsion on 08096535511

Leave a Comment

Your email address will not be published.

Select the fields to be shown. Others will be hidden. Drag and drop to rearrange the order.
  • Image
  • SKU
  • Rating
  • Price
  • Stock
  • Description
  • Weight
  • Dimensions
  • Additional information
  • Attributes
  • Add to cart
Click outside to hide the compare bar
Compare
Compare ×
Let's Compare! Continue shopping
0
0