Euromonitor International’s Luxury Goods Industry Manager, Fflur Roberts, introduces the newly launched luxury goods database by giving a global overview of the industry. Roberts explains how recovery has started in luxury goods in 2010, but the last ten years have been a roller coaster for the industry, mainly due to the economic recession.
China and India are two markets where luxury goods are expected to thrive. China’s overall economy is expected to grow, which aligns with the projection of luxury goods growth – about 9% in 2011. Brazil is another dynamic market for luxury goods, which are targeted at a much younger audience there.
Interestingly, the average price of a luxury item in an Eastern market such as China or Russia can be 2 to 3 times more expensive than in a Western markets such as the UK or France. Yet the Eastern markets are set to contribute the most growth to luxury goods. Due to these high prices, many consumers in China will go to Hong Kong to buy their luxury items.
Despite the recession, the United States remains the largest market for luxury goods, contributing over 33% of the global market for these goods.
Across categories, luxury electronic gadgets (which include luxury MP3 players and luxury mobile phones) is the most dynamic and fastest growing category. The worst hit market was the luxury travel goods market, which is in line with a drop in the overall travel market.
The future of the luxury goods market will be shaped by social media and consumer reviews, along with the trend of “going green”. Brand heritage will also play into the future of luxury goods; brands with a strong history will fare better than newer brands.
In the next five years, companies that wish to thrive in the luxury goods category will need to focus on creativity, differentiation, social responsibility and customer relationship.
Euromonitor International is proud to present our luxury database, which looks at 25 countries and includes 10 categories. The database is available on Passport.