With the Royal Wedding just around the corner (April 29th to be exact), everything from doughnuts to garden gnomes have been made in support of the marriage of William and Kate, attracting an abundance of media attention to the event that seemingly everyone will be watching. If you haven't heard about the Royal Wedding by now, it is safe to say that you must be living under a rock. An estimated 2 billion viewers worldwide are planning to watch the ceremony and festivities on Friday, serving as a cultural phenomenon that will bring together an abundance of nations. With the immense amount of media attractions comes business opportunities, of course! Businesses across the world have taken advantage of the excitement and created products such as Royal Wedding garden gnomes, Royal Wedding inspired cakes, Royal Wedding Ring Pops, Royal Wedding doughnuts, Royal Wedding pizza...even Royal Wedding beer. With all of these business opportunities, entrepreneurs are able to take advantage of the high demand for such goods and monopolize the amount they produce and the price they sell these goods for. These entrepreneurs are aided by the media, who have been successful in creating the frenzy that prompts people to shell out their money for all of the latest Royal Wedding gear. The demand for these goods will increase as the wedding approaches, allowing the producers to up the prices in the days prior to the wedding. However, much like World Series tickets that drop in face value after the first pitch is thrown, the demand for Royal Wedding gear will drop an exceeding amount after the wedding has taken place. Knowing this, producers should evaluate the amount supplied and plan accordingly.
Allie Armstrong
I understand that people got excited overly excited for the Royal Wedding but do you think that this an occassion imporant enough for them to spend their savings on products that deal with the Royal Wedding? Are the people willing to do trade-offs with their money for products with rising prices? On the other hand I think that the fashion industry will also have an interest in the Royal Wedding since the women will have a high demand of the style the bride and her wedding maids wear. Then they well sell the clothes at a high price because the styles will be of high class making production rise.
ReplyDeleteThe fashion industry along with other businesses have a lot to gain since people tend to like what important and famous people do and wear. However, I think the fashion industry has more to gain than any other business because the businesses are going to being gaining locally where the wedding was held versus the fashion industry will catch the eye of many women globally increasing the demand for similar styles worn. However, the question is how much of it people were willing to buy of it?
ReplyDeleteI think that the royal wedding could play a role in our economy but it would pay the biggest role in the fashion industry. Consumers are watching Kate’s every move to figure out what this new royal is wearing. It is no doubt that people have viewed the royal wedding and have already gone out to buy clothes that are inspired by their looks. Designers and brands are making money because there is a high demand for the clothing that the royals wore. Consumers idolize the royals and their fashion taste, therefore the designers who designed for them or have looks inspired by them will make millions of this wedding. The royal wedding has done a lot for this economy because consumers want what the royals have. What the royals have also worn will now be considered luxury goods and since people are so obsessed with the royal wedding; these goods will be in demand. People will buy more luxury goods because of the royal wedding. The royal wedding has the fashion industry a huge favor and has helped stimulate our economy.
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