It’s that time of year again, when retailers try to entice us with price cuts and year-end specials. But for luxury goods, the sales strategy is different. An increase in price seems to stimulate higher demand for such products. Perceptions of scarcity and quality are reinforced by keeping the product out of reach for most of us, creating the aspiration of being able to afford such indulgences “one day”. While many South Africans already have Richemont shares sparkling in their portfolios, let’s have a look at some other global luxury goods companies:

LVMH ..

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