A watch is simply a portable personal device that shows/measures the progress of time. A handbag is a mere container for holding/storing/carrying something. And a car is nothing more than just a piece of mechanised equipment on wheels used for transport.
As far as their respective basic brands and products go, the above definitions apply. But when it comes to luxury, a watch is not just a watch; a handbag, not just a bag; and a car is much more than just a car.
They become symbols of success that reflect the owner’s societal status, affluence and lifestyle. They are VIP tickets to the high life and all its trappings of luxury superior to the mass-market variety in design, quality and technology. (It feels good to buy luxury goods such as a prestige car.)
This is the reason why people pay $1,000,000 for a car when they can get one for $100,000. This also explains the dealerships’ investment in solid after-sales support and top-notch customer care. In the premier motoring league, a good product is not enough. It is as much about the flagship models, as it is about the privileged folks who own them and therefore fly the flag for the brand.