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    Global Luxury Market Slowly Revival

    2010/6/1 11:09:00 42

    Global Luxury Market Slowly Revival

    The luxury market was plunged into recession at the time of the global recession, and now it is recovering.

    However, analysts say that because of demographic changes and consumer caution, luxury retailers will still face challenges.


    According to Bain, a business consultancy, global luxury sales are expected to grow by 4% in 2010 to 153 billion euros ($191 billion).

    Global luxury goods sales fell by 8% in 2009.


    The global market research of luxury goods made by Bain believes that the growth of luxury sales in 2010 will be concentrated in the first half of the year, and the growth in the second half of this year may be slow.


    According to the Retail Data Services Department of MasterCard, luxury goods sales in the United States increased by 15.5% in April, up 22.7% in March.

    Sax, a luxury goods seller, suffered losses in the first quarter of last year, and its profit grew by 6.1% in the first quarter of this year.

    Tiffany's global sales increased by 17% in the first quarter of this year, and its profits almost increased by 4 times.


    The French luxury goods companies, Hermes and Louis Weedon, have also increased their sales in the first quarter of this year, mainly because consumers in Asia, excluding Japan, have been buying watches, jewelry and other high-end goods after months of economic recession to make their sales in Asia good.


    However, analysts cautioned that it is too early to celebrate the prosperity of the luxury market.


    According to the survey report of "unified marketing company" by consulting firms, the growth of luxury sales in the US market will mainly come from "super rich families", that is, families with annual income of more than $250 thousand.

    They account for 2% of American households.

    In the first quarter of this year, the expenditure of these people increased by 22.6%.


    The company's survey found that the "wealthier family", the family with annual income of 100 thousand to 250 thousand (excluding 250 thousand dollars), increased by 1.9% in the first quarter compared with the fourth quarter of last year.


    Pam Danziger, President of the unified marketing company, said: "the expenses of the super family have returned to the level before the recession.

    However, even if they indulge in consumption, it is difficult for the luxury goods market to continue to recover. "

    Before the recession began in 2007, the growth of the luxury market has been driven by the increase in the wealth effect caused by rising house prices and rising stock markets, which has led to an increase in the expenditure of "Henry" (high-income but not well-off).


    Danzig said that even if the stock market rebounded and the economy stabilized, the luxury market would also be affected by the aging of the US population: the baby boom generation had caused a sharp increase in consumption. Now this generation has reached retirement age, and the "X generation" can not make up for this consumption gap.

    "The best age for consuming luxury goods is between 35 and 55," she said.

    As people get older, their priorities change. "

    This means that the luxury market is unlikely to recover from 2018 to 2020, because the "millennial generation" born after 1997 after 2018 to 2020 will start to craze.

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