As soon as we think about the word luxury, we probably immediately picture something nice, unique, something different, and usually associate it with a high dollar value. All this is true, but let's look even deeper.
To me luxury is a product that a company tries to create a product that is unique in so many ways that only those who have the means to afford it and those that can't could add it to the 'One Day' list. Let's look for example at cars, which could be both luxury and exotic, Bugatti Veyron for example; with a price tag of more than 1.2 Million Dollars, this car is a dream more than just a car, owning it is an achievement of something probably beyond the top of Maslow's Hierarchy of Needs.
Luxury is simply a way for people to buy the unordinary products that will set them apart from the rest. Something of caracter, something of style, but at the same time it another way of telling how rich that person is, or how much he/she loves to be different, or simply how much debt he/she has gotten.
Either way this is how most people will look at you.