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Why do luxury goods often thrive even when global economies slow down?

It's because the luxury brands' customers are not affected by recession.

The economies slow down, but if they're the first hand suppliers, both sellers and end customers will still buy the product because they really need it. Example if we want to clean our teeth, we need a toothbrush and a toothpaste, do people want to create their own toothbrush and toothpaste when they can buy it in cheap price? most people won't.

Since many people depend on rich people's product, those rich people are safe and they can as much as they want, including to buy products in luxury brands.

I thought they were somewhat impacted but not as much. Mostly because many of their margins are fairly loose (they make decent profit per item sold and usually make things out of parts that can be widely sourced)..

Recessions push economic hardship onto those that are poorest in an economy and don't effect the wealthier parts all that much (or people with decent savings).

The wealth and value in an economy aren't often lost, they're just transferred to those who can take the risk of who perceive/know there's less risk in a sector.

when global economies slow down, the middle class generally disappears... The number of the very rich increases slightly, while the number of the poor rises so much...
And yes when this gap widens, luxury consumption also raises. you can see more luxury things like cars etc in this case...

I remember seeing a documentary about luxury goods such as Gucci bags and similar accessories (most shown were woman ones, if that's relevant). It claimed that a large number, if not the majority of their customers weren't wealthy people, but the middle class, because they wanted to appear rich (social status whatsoever), the truly rich people didn't bother with such petty items. It's been a while since I last saw the reportage, so I don't quite remember the details, but a quick Google search brought similar results to those I mentioned.

Link's here (https://www.michelegargiulo.com/blog/middle-class-luxury-spending).

In short, most people who buy luxury brands are not affected much by the recession because they are rich for so many reasons. They may have businesses that they can fall back on even if some of their businesses are not doing well. They have other resources so to speak in order not to go bankrupt during recession.

Because the buyers are the millionaires and in the middle class, not the billionaires. That is the big difference here, billionaires don't look for luxury brands, they just were plain shirts or bags. But for those who wanted to stay relevant in the society, they keep on buying this luxury brands to show that they are not affected by the recession.

So yeah, they're recession proof as long as this so called high class society will continue to buy this items to flaunt. Nevertheless, they didn't know how cheap it was to make this one bag. It was exposed early when there was a tariff war between the US and China as most of this bags are being manufactured in one part of China.

To understand this, you first need to understand which class of people consumes luxury goods more. It is difficult to give exact statistics, but in this list, the middle class will be more than the rich. Because the addiction to show off in society is seen only among them. A poor person and a truly rich person (most of them) never spend extra money on this luxurious life. For those who do spend these expenses, the global economic recession is a bigger opportunity for the market. Because at this time, the bands are filling the buyer gap and they make various offers and those people take advantage of these offers.

That's because even if the economy slows down, the desire to have the luxury goods is always in demand. This is what social class is giving to people. No matter what economy we are having right now, the desire of owning a luxury good and brand is always in the mind of the people. That gives them an upbringing that they're doing better in life when they own it. So it's from the rich and middle class that are into this market and these people have always cash-ready to purchase and make their dreams come true by having any of those luxury goods.

Good answer, when customers keep buying luxury things while won't luxury brands keep thriving because they buy quality and valuable stuffs and the rich and influential people in the society always go for the best things therefore the luxury brands also keep making those items available all the time. Recession only affects the poor but for those who are rich and wealthy, they are used to luxury lifestyle that is the reason why some of them after buying those luxury stuffs they come on social media and begin to say ''luxury or nothing''.

Have you done a critical research to know for yourself the class of people that purchases those luxury goods/items in the market? They are mainly already made men with fat bank accounts, and they usually buy those luxuries for ostentatious purpose which is weigh out of the league of the common man.  And some of these luxury items don't have second hand values despite their high cost.

In this present economy what the poor care most about is basic needs for survival which makes them less concerned with spending so much on luxury with funds they can use in buying basic goods that would serve them largely.

The bragging rights is what they are purchasing from these sales and items. And that's why it's kind of a recession proof and to be honest, even if there is a recession, these people are going to flaunt in front of people's eyes to show that they are not like others who are struggling to do better in life. Well, they can flaunt whenever they want because they've also probably worked hard for it to reach that status. So, bragging rights and status symbols are pandemic and recession proof products and services.

Even if the economy is bad, the purchasing habits of the rich are different from those of the poor and the middle class. That's why they are not affected much. Basic needs and luxury spending are similar. In bad economic conditions, it's usually the middle class that's affected and if savings need to be made, they are the ones who do it. In the simplest form, that's the answer to your question.

Luxury is the most vulnerable industry because its the least required and expendable but true recession is quite rare vs normal market pullbacks.
   I think the biggest danger for luxury brands are to be replaced in some way by rivals or superior technology perhaps which is why most companies are reinventing themselves constantly in attempt to be their own best competition.  This is opposite to the classic tale of Nokia famously shelving their invented iphone prequel.

Luxury isnt recession proof but the entire world being in recession is not often, so marketing is the modern game and logistics to sell anywhere on demand.

Interesting. Recession doesn't affect the wealthy minor group of society, so they have no reason to change their habits. At same time, middle and poor classes have never had access to luxury brands, so it doesn't affect that niche of market too. It shows wealthy class lives a world apart, almost invulnerable to struggles everyone else is vulnerable to.

they have the most elite marketing tactics

these brands are a sign of wealth and status
their customers do not care about the price they just want the exclusivity

they also sell timelessness and promotes their product as a worthy investment
and a safe haven

maybe it will help you to read this article on how luxury brands still get their revenue
https://www.wunderkind.co/blog/article/blog-article-luxury-brands-thrive-during-retail-recession/

basically saying that luxury brands take care of their elite customers extremely well like no other

Not all luxury brands should be treated equally, as many luxury brands are unable to maintain their prices during a recession due to various circumstances. Generally, luxury brands often thrive even during a global economic slowdown, primarily because they are produced in limited quantities, and some people may purchase them solely for their collection. Sometimes, certain brands already have a well-established reputation for their products, making their quality and hard-to-find products a compelling selling point for collectors.

From a price perspective, the reason why these products are collected by the wealthy is because they likely have the potential to become valuable assets due to their production numbers, which drives them to compete for them. This is even more absurd for works of art, such as paintings as some command far more astronomical prices and are constantly increasing. However, that's the reality as they sometimes exceed our expectations.

Because luxury consumers are not experiencing any recession. On the contrary, during recessions, the wealth of the richest people only grows. By the way, luxury consumption is also growing during the recession, because in contrast to the impoverishment of the population, the rich are intensely consuming and displaying luxury because it brings them pleasure.

Therefore, in difficult economic times, we can be surprised to see how sales of luxury cars are growing - it would seem paradoxical, but this is only in a different logic. The public consumption of the rich is increasing, and luxury is aggressively demonstrated in front of a rapidly impoverished population.

Why? Because it feels good. This is the enjoyment of wealth. After all, wealth is ultimately an emotion. Enjoyment, satiety, confidence in the future, a sense of security, a small amount of mercy, which is enough to give a beggar a piece of bread, and self-satisfaction with his "kindness." Something like that.

In case of recession the economy is being affected and hence the ordinary people reduce their spending but the effect on the rich is comparatively small. They earn, have, and make their investments that are so much to the extent that when the market is down performing, they do not have to alter their lifestyles. Thus, the demand of luxury goods is seldom reduced. Instead luxury goods tend to be viewed by rich customers as a shelter or status preservation tool. The other is that although it is a recession, these brands do not reduce their prices and thus retain their exclusivity hence their image is preserved. I believe the luxury market lives due to the fact that the customers are in a very different plane as compared to the mainstream economic reality.

There's not much of a difference though, they are luxury good, only a few can afford them, so why they can't maintain the price? If they lower it then it will not be called luxury goods or items. So I disagree with you that they won't maintain it. On the contrary, they could have add a mark up again during recession and still there will be some buyers for them, those ultra rich.

But if you look at it, those brands are already billion dollar empire, so it will just continue to for to make a lot of money as their clients are rich. So it's going to be a cycle as what we've seen, rich becomes richer in recession.

They consider luxury goods to be a kind of investment, even though their value will decrease over time.
Take, for example, watches, bags, or shoes from well-known brands. They buy them because they can resell them later when they feel like it's time to sell.
They can be stylish, follow trends, and get the item.
This is my opinion, and it's not necessarily the true reasoning behind it. Think again.

Luxury brands don’t rely on the broader economy as much as regular retailers do. Their main customers tend to have high, stable wealth, so a recession doesn’t change their spending habits that much.

In some cases, luxury sales even rise because people view those items as a “store of value” or a way to signal security when everything else feels uncertain.

Because the main buyers of this are the very rich, who don't understand the meaning of crisis or poverty. If the world economy is in trouble in leading countries, it means the rich will simply start earning more slowly, but still earning huge sums, as they always have. And sometimes they even make money: for example, during COVID, big pharma earned several times more. Imagine how much money the rich laundered from selling face masks, which were essentially useless.

Because the economy only matters to ordinary people. Whether it's doing good or slowing down, the rich earn big. Their companies or investments may lose millions in revenue but it doesn't necessarily equate to a change in lifestyle. A struggling economy may necessitate a call for their companies to reduce expenses but it certainly doesn't call for personal frugality.

But I'm sure they aren't completely insulated from the effects of global economic problems. It's just that their market isn't dependent on ordinary people.

I don't think luxury brands are completely recession-proof. In recession, all major firms have to go through some tough times and so does the luxury brands as well. The target customers of luxury brands are not always the victims of recession so these brands still thrive in situations like these but their incomes will somehow take a dent. Luxury brands have various products and it will depend on the use-case of that specific product. Not all but some will even face a downturn when it comes to recession.

No company is completely recession proof but some are recession resistant depending on their product. If they offer essential goods and services or are somewhat working along with the government that that company might be recession resistant.

Economic slowdowns do not significantly affect the wealthy, because in many ways they are part of the forces that indirectly create those cycles. For them, there are no real obstacles to fulfilling their wants and needs, they can purchase anything without even looking at the price tag.
In addition, luxury goods are often treated as investment assets, which is why it’s no surprise that when the economy weakens, demand for luxury items actually increases. Wealthy individuals do not spend their money carelessly, they are calculated and prudent in managing their wealth.