Is the financial crisis a threat for the luxury business?

Abstract: Background/problem: Many business and industries have been hardly influenced of the occurrence of this financial crisis which is expected to be the worst financial crisis since 1929. Historically the luxury business has always been immune to uncertainties and crisis. It is of great interest to see how the luxury business reacts in the financial crisis from a marketing strategy perspective. Purpose: To explain the impact of the financial crisis on the luxury business by using and identifying the nature of luxury and the suitable marketing strategies. Methodology: A deductive philosophical approach and a positivistic and interpretative research approach are applied in this thesis.Findings: The luxury business has not been influenced by the financial crisis based on the interviews. The main reasons behind it are interpreted as the nature of luxury itself and its unique customers. Conclusion: Based on our study and the involved companies, it is assumed that the luxury business is invulnerable to the financial crisis.