Luxury Goods: A Global Strategic Business Report
San Jose, California (Vocus) June 14, 2010
Luxury goods, is an industry sector that embodies the strength of the global and regional economies. Robust trading and business environment feeds growth in this industry, which is home to manufacturers of a diverse range of expensive products, such as, handbags, watches, jewelry, clothes, cosmetics, designer footwear, pens, yachts, luxurious wines and perfumes, among numerous others. Given that psychological benefits such as, prestige, status symbol, esteem and exclusivity make up critical need factors, product features such as premium pricing, craftsmanship, coveted designer brand status, aesthetic appeal, and superior quality have been traditionally driving gains in this marketplace. With its high correlation to a country’s GDP, the luxury goods industry is extremely cyclical in nature, with economic ups and downs amplifying the response demand patterns. For instance, in periods of economic boom demand waxes higher than the growth in GDP, while conversely in periods of slowdown, demand recedes rapidly as consumers quickly axe their spending on high-priced luxury goods. Illustrative of this trend is the pal of gloom set over leading luxury markets in the world, such as Europe, North America and Japan, which faced the most severe impact of the global economic recession.
Although luxury is widely touted as a habit difficult to break, the prolonged severity of the current economic slowdown has elicited declines in spending and the low tide has stranded growth with wealthy consumers gradually cutting back on lavish, luxury lifestyles. This scale back on spending by High Net Worth Individuals has hurt the global luxury goods market with market participants still reeling under the impact of reduced lifestyle and passion spending. The apparel segment especially is projected to be the worst hit segments, with the affluent class deferring the purchase or restricting the purchase to classic durables. However, as the year 2010 limps out on a broken economy, a quick bounce back to market fundamentals instrumental in shaping the industry’s growth over the years is forecast to be on cards. Diversification of the consumer base for luxury goods away from the conventional ultra rich consumers augers well for the industry in the medium to long-term and as a result of which perception of luxury will emerge well beyond the traditional confines of fashion, and exclusivity to include quality and intrinsic product value. The changing consumer habits and values are generating enormous opportunities for marques to draw potential customers as well as reinforce their relationships with their more wealthier and absolute luxury shoppers.
Another major factor, which is expected to growth in the market, is the growing demand for luxury goods, especially haute couture clothing, apparel and footwear, in developing Asian countries, such as China and India. Growing awareness over international prestige brands, coupled with rising standards of living to complement aspirational purchases are factors poised to drive growth in these markets. Other factors, which make developing countries an attractive target market, include the emergence of new classes of affluent consumers, particularly working women, growing base of financially stable younger generation with a penchant for living unique lifestyles.
As stated by the new market research report on global luxury goods market, the Asia-Pacific market projects the fastest CAGR of 15.7% over the analysis period 2007-2015. Growth I this market will surely outshine growth in the developed markets. Although badly hit by the economic downturn, Europe will continue to retain its leadership in the global luxury goods market, taking solace from increased tourism as a result of the weak euro and its influence on luxury goods purchases. Product wise, the luxury watches market represents the largest segment within the luxury goods market, having contributed a share of about 17% in the total dollar sales, while luxury cosmetics market is projected to be the fastest growing segment over the analysis period 2007-2015.
Key players in this marketplace include Bulgari SpA, Burberry Group plc, Carlton Travel Goods Ltd., Christian Dior Couture SA, Christian Dior Couture, EDOB Abwicklungs AG, Ermenegildo Zegna Group, Giorgio Armani SpA, Gucci Group, Hermès International, S.A., L’Oreal S.A, LVMH Moet Hennessy Louis Vuitton SA, Polo Ralph Lauren Corporation, Prada S.p.A., Shiseido Company Limited, The Swatch Group Ltd, Tiffany and Co., TOD'S SpA, Valentino Fashion Group S.p.A, and V.F. Corporation among others.
The report titled “Luxury Goods: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a review of noteworthy market trends and growth drivers. The report in addition also enumerates product introductions, recent acquisitions, and other strategic industry activities. The report offers latent demand estimates and projections in value sales (in US$ billion) for the global Luxury Goods market by product segments, including, Watches, Menswear, Womenswear, Cosmetics, Leather Goods, Fragrances, Jewelry, and Shoes across geographic markets such as US, Canada, Japan, Europe, Asia Pacific, Latin America, and Rest of World.
For more details about this market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1100 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
Global Industry Analysts, Inc.
Web Site http://www.StrategyR.com/
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