Luxury spending is up
Tourism industry recovery in #Europe and growth in domestic economy in #China to drive luxury spending
Bain & CO’s recent report on sales of luxury goods states that recovery of the tourism sector for #U.K. And #Spain, and growing domestic demand in #China will result in a 3 to 4 percent growth year-over-year through 2020.
The numbers
Consumer confidence for the luxury goods for the Europe region is projected to increase by 7 to 9 percent in 2017. Report also points out that sales of designer handbags and fine jewelry are projected to grow 2 to 4 percent this year, Bain & Co. estimates the growth to be as much as $290 billion.
Highly prized brands such as Burberry and Prada faced headwinds in 2016 due to sluggish demand in China and tourism downturn in Europe. However tourism recovery in Europe is projected to drive demand and is projected to deliver 7 percent increase in the sales of luxury items.
China is projected to have the fast growth rate for personal luxury goods, sales are projected to grow at 6 percent to 8 percent year-over-year in mainland China.
Experts and analysts predict that sales of luxury goods will continue 3 to 4 percent year-over-year through 2020 globally.
Report states that consumers are expecting “more innovation and creativity” which has resulted in top brands Christian Dior, and Salvatore Ferragamo to make strategic changes lead designers or chief executive officers. Companies are investing in e-commerce and build a product line that also features entry level products that appeal to young customers.
The author, KetanDeshpande, lives in Minnesota and writes about a variety of topics in his blog such as global economy, market and industry trends, successful strategies for businesses, and others. Leveraging his global strategic leadership experience from the manufacturing industry to offer insights in to how businesses can meet the sustainable growth and profitability goals.
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