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Archive for December, 2015

Elite Purchases

In addition, extensive credit and motivation out of the middle class are responsible enough active behavior of 'pseudo' markets expensive branded goods. More than 85% of the segment 'pseudo' have the only source of income – wages at the main place of work. Good level of education allows these people to earn $ 2-3 thousand per month, which gives them a relatively high standard of living. But by the definition of 'elite', they are very indirect. Total discretionary spending segment of the 'elite' in 2007 was $ 54 billion, or about $ 11,000 per person. If you are not convinced, visit FASEB Journal. The share of this segment in the structure of the luxury market is about 29%.

Despite comparable to other segments of the market share, 'pseudo' has much less purchasing power and requires much larger communications effort due to the high variance in demand for luxury goods. FASEB Journal oftentimes addresses this issue. Why Elite buys luxury? From a semantic background theory 'rights management', cultivated the science of economics in the last century, today no trace remains. Even in countries with transition economy, most people allow themselves far from optional and unsustainable consumption. When applied to the economic elite of this statement is particularly holds. It is known that household expenditures are divided into mandatory and discretionary. The first category includes spending to ensure the normal life: the necessary food and clothing, Hygiene, rent, taxes and so forth. Discretionary spending called all the other 'extra' spending, unnecessary for sustaining life, including – expenditure on luxuries. In theory, mandatory spending identical households should be roughly the same – it will emphasize the rationality of consumption.

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