The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.Learn More
Growth in consumer expenditure on the purchase of cars has typically lagged growth in the retail value of luxury goods in mature markets in recent years but the situation is generally reversed in emerging markets. In fact, the retail value sales growth of luxury goods per household between 2004 and 2012 has been outpaced by the per-household development of consumer expenditure on the purchase of motor vehicles in all BRIC markets except India. This trend is largely replicated across emerging markets, albeit with exceptions such as Mexico and South Africa.
Our latest automotive briefing, Cars and Luxury Goods: Complements or Substitutes for Share of Consumers’ Wallet?, compares and contrasts retail sales of luxury goods and consumer expenditure on the purchase of motor vehicles, identifying whether consumers have a greater, lesser or equal propensity to spend on cars or luxury goods in different countries. Subsequently, sales of luxury goods and premium light vehicles are analysed in the context of income developments, mapping the long-term potential for key growth markets. For example, even with measures to stop government officials buying foreign brands, the growth in middle class households in China will underpin premium brand volume sales of two million by 2020 – in line with premium demand in the US. However, the market for luxury goods in the US will still be twice the size of China.