Luxury industry is expected to grow strongly in the near future
Bain & Company forecasts that the market is expected to achieve revenue from 295 to 305 billion euros in 2020.
Positive outlook after a challenging year
2018 was a difficult year of luxury industry. Most of luxury brands had unpredictable results; however, they have been showing optimism and positive outlook for 2019. Due to lower demand of consumers in China, Prada and Tiffany reduced their prices in recent trading. Facing this problem, Tiffany is looking way to promote e-commerce business in 2019. Besides, Hermès is continuing to grow thanks to China’s customers demand with high operating profit (exceeding 2 billion euros).
Asia is still an attractive market for luxury brands in the near future
According to a new report from Wealth-X Data Company, Asia is now forming a richer class whose assets valued at least $30 million. This area’s assets accumulating process is faster than any other region in the world. As a result, Asian consumers tend to have more condition to purchase and use luxury products, from that this area have favorable conditions for expanding and developing luxury industry.
Asian shoppers are main buyers for luxury goods
Especially in China, the amount of money that Chinese people spend on luxury goods such as watches, perfume or cosmetics accounts for 46% of the world. Jiang Yiyi, director of the International Tourism Development Institute said: “Convenient travel conditions, attractive foreign retail products and the tourism market have allowed Chinese consumers to buy large amount of luxury foreign items both at stores and online.
The growth rate of luxury goods market shows the sustainability of this market due to the increase in the number of good sold, not the price and the more balanced trade between tourism and recovery process in each country.