In the UK, examples of luxury goods include designer clothing (e.g., brands like Burberry or Alexander McQueen) and high-end cars (e.g., Ferrari or Rolls-Royce). When people experience an increase in disposable income, they are more likely to purchase such items.

Another example is expensive watches (e.g., Rolex), which are often seen as symbols of wealth and success. Luxury goods typically have a price inelastic demand; even with price increases, demand tends to remain stable or even rise, as they are seen as status symbols. Understanding luxury goods helps businesses target high-income consumers.