Argentinians with high purchasing power who wanted to acquire emblematic brands over the review period such as Louis Vuitton, Armani, Ralph Lauren, Fendi or Tiffany & Co were forced to travel abroad to buy them, since they were not present in the country. Chile and Brazil have become, for high-income consumers, the main luxury shopping destinations due to their proximity and wide variety of brands.
Luxury retailing experienced strong growth over the review period and this growth continued into 2017, aided by Australia’s economic growth, a rise in discretionary income and Australians’ increasing taste for luxury goods. Many Australians have shown a willingness to spend on more premium, high-quality products that are perceived as an investment, particularly luxury timepieces and luxury jewellery. The expected depreciation of the Australian dollar is ... Read more
Across luxury goods, there are looming threats to growth, both for 2017 and the forecast period. The economy has both been helpful and risky for the market because although it remains stable, the Philippine peso continues to depreciate, causing alarm across luxury goods which is mostly international in nature. The stable economic status of consumers is saving the market from declining as consumers continue to trade up to higher branded goods to define ... Read more
The ongoing positive development of luxury goods in Germany in 2017 was a result of supporting trends on both supply and demand sides. With regard to supply, new and generally multinational companies and brands entered the German market for the first time, while those already present widened their product portfolios. Similarly, new retailing channels emerged or existing ones increased their penetration, for example through luxury players ... Read more
The luxury goods market recorded healthy value growth in 2017, supported by the improving economic environment and favourable demographic profiles, as well as the expansion of multiple luxury brands in Canada. This robust growth reflected a luxury goods market geared towards high-end luxury and high-value service. The Chinese population, mainly concentrated in Vancouver and Toronto, was a major consumer group purchasing luxury goods. Rising income ... Read more
Luxury goods in Sweden saw more moderate growth in 2017, as the economy saw a worse performance than in the review period. Several categories were also more mature, which further constrained growth, such as luxury timepieces, which saw strong growth during the review period. The market is expected to display slower growth in the forecast period than in the review period, as several categories are projected to become more mature, whilst the Swedish ... Read more
Although tourism continues to reach record figures, Spain is still far from being considered a luxury shopping destination, unlike France and Italy. This limits tourist expenditure on luxury products in the country. Locals make a significant percentage of the luxury purchases in Spain. Therefore, the recovery of the Spanish economy was a key factor supporting the performance of luxury goods in 2017. However, the recovery of the employment rate in 2017, ... Read more
Although tourism continues to reach record figures, Spain is still far from being considered a luxury shopping destination, unlike France and Italy. This limits tourist expenditure on luxury products in the country. Locals make a significant percentage of the luxury purchases in Spain. Therefore, the recovery of the Spanish economy was a key factor supporting the performance of luxury goods in 2017. However, the recovery of the employment rate in 2017, ... Read more
Luxury goods continued to register a weak performance in Switzerland in 2017. Swiss consumers became price sensitive and their low confidence influenced their spending. Consumers purchased what they considered to be essential goods and reduce other expenses. This was due to the sluggish Swiss economy and the political volatility in Europe and elsewhere that made consumers cautious. Categories that are dependent on tourist spending such as luxury ... Read more
Female consumers continue to be targeted by leading luxury leather goods brands in Malaysia. New product launches by luxury leather goods brands such as Louis Vuitton, with its new Masters II collection, and Prada mainly target women’s luxury bags and small leather goods, rather than men’s areas. Affordable luxury leather goods brands like Coach and Michael Kors are in high demand, especially among younger female consumers.
The category’s performance in current retail value terms exceeded expectations in 2017. If in the past luxury was intended for a privileged class, in recent years, it became stratified in categories such as “premium”, “super premium” and “affordable luxury”, which makes it more accessible to people. In the context of past economic downturn, a growing number of luxury brands addressed this upper end of the value chain, with companies seeing the luxury ... Read more
Luxury goods in the United Arab Emirates continued to witness slow growth due to the challenge of adjusting to local and global economic pressures starting in the year 2016. The luxury goods industry was reportedly one of the worst hit markets as shaken consumer confidence led to decreased demand, for which the supply needed to be adjusted. Compared to the year 2016 the first half of 2017 did see some deceleration in the growth slowdown. Whilst tourist ... Read more
Overall, luxury goods in China outperformed the previous year in 2017, demonstrating the fastest growth momentum in retail current value terms of the whole review period. The recovery trend reflected a move from outbound to inbound consumption in the context of luxury goods. On the one hand, the devaluation of the Chinese yuan meant that goods abroad become more expensive for Chinese consumers, reducing the price difference for luxury goods between ... Read more
Despite challenging economic circumstances, manufacturers of luxury brands focus their efforts on Mexico, and it is considered the most favourable country for this in Latin America. Experiential categories such as luxury cars showed strong growth driven by financial plans available to middle-income consumers, such as interest-free payments or leasing. Millennials contributed to the solid performance of categories like super premium beauty and personal ... Read more
