With the increasing number of the billionaires, the demand for luxury goods also rises rapidly. A while ago, a Hermès diamond BIRKIN was sold for $203,150 setting a new world record for the most expensive handbag ever sold at a public auction. Obviously, Hermès is targeting the ultra-rich people.

Hermès has a very strong positioning in the luxury market, which it owes its almost 200-year old heritage. The incredibly high prices and limited edition series make the products from Hermès exclusive. This strategy definitely works. We can see so many people are eager to own the handbags from Hermès. In order to get Birkin and Kellly which are the most wanted Hermès handbags for women, people have to buy other stuffs like jewelry or shoes from Hermès . That seems to show that they are in the membership. If you just walk by the Hermès shop and go there for the first time, it is barely possible for you to buy a Birkin.  You have to keep shopping in Hermès. Some of the customers complaint that they bought goods that they do not really want to buy. However, no one forces them to buy. Their desire to show their achievements to others drives them to buy luxury goods. In addition, sometimes Luxury can be as indulgence. Consumers are willing to pay high price for goods that express their individuality. Luxury makes them feel good. That is why is so significant to know consumer psychographic analysis. To understand what consumers need is the key to be successful for a company.