ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Luxury tends to fare better than other sectors during a downturn because of its exposure to high-income consumers. Wealthy shoppers do pay attention to their net worth, and are less likely to spend when the market is down, but the impact is often less dramatic than for other groups.

Detailed explanation-2: -By offering products that are within reach of a wider range of consumers, luxury brands can maintain their visibility and appeal during tough economic times.

Detailed explanation-3: -Consumer Spending During a recession, retail sales generally decrease as people have less money to spend. As retail sales decline, the impact on the economy can be substantial. Businesses may have to lay off workers to reduce costs, and some businesses may close.

Detailed explanation-4: -While many consumers are trying to curb their spending in the face of high inflation, the richest shoppers continue to snap up luxury goods at a record pace, The Wall Street Journal reports.