After facing difficult times from 2012 to 2014, the market for luxury products has to show slow but steady growth in Europe.
The third Annual Power of Luxury Goods global reports published by Deloitte Touche Tohmatsu Limited identifying the world’s top 100 largest luxury goods companies.
Overall, the market has a slow but steady growth in 2016 with a cautious behave of wealthy tourists and domestic shoppers.
The United Kingdom is the tourist from the Middle East, China, Russia, and the US that drives a significant part of the demand in the luxury goods market. However, the forecast for a wider UK domestic economy is improving, with some affordable luxury and street fashion brands performing well too.
The market for male consumers is growing considerably and The UK is a leader for digital developments in the market using social media, for example.
The UK corporate sector, wider economy, and political establishment have also been navigating the country’s upcoming referendum vote on the UK membership of the EU, which has put much of the UK corporate investments into a ‘holding pattern’ pending the vote outcome on 23 June.
The UK is home to seven of 100 luxury goods companies achieving 11.1 per cent growth in luxury goods sales, the same as in 2013 and the highest among all the countries in 2014
On ecommerce, the luxury goods market has the challenge of enhancing the shoppers’ experience also online.
A Deloitte study estimated that 64 per cent of all in-store retail sales in 2015 would involve digital technology, up from 49 per cent in 2014.
Another global thought to highlight:
- Italy is still the leader country in luxury goods companies;
- Mexico is the largest luxury goods market in Latin America followed by Brazil;
- Many Brazilians are staying away from the more expensive brands, while affordable luxury brands such as Michael Kors continue to gain market share;
- The Middle East represents a big opportunity for luxury brands. Luxury malls in Abu Dhabi and Dubai have helped put these cities on the map for the industry, and the United Arab Emirates continue to enjoy strong growth;
- The expenses of people travelling, for example, represents 40% of the personal luxury global market.
Click here to download the third annual Global Powers of Luxury Goods report.
Source | Deloitte
Photos | Rob Dann