Luxury Consumption In Russia Is Expected To Shrink By 4-6% In 2014

< p > the Italy high-end enterprise association Altagamma held a meeting on "href= http://" www.91se91.com/news/index_p.asp "Milan /a" on Tuesday, mainly discussing the luxury consumption situation in the key market of luxury goods industry in Russia. "A"

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P pointed out that Russia's total consumption of personal luxury goods in 2013 was 5 billion 800 million euros, an increase of 5% over 2012. It is the fifth largest and tenth largest market in Europe.

However, because of Russia's annual inflation expectations of 6.5%, the stagnation of GDP growth and the expected decrease in the balance of payments and the multiple factors such as the Crimea crisis, the ruble depreciation and the capital outflow reaching the maximum in recent years, the total consumption volume of individual "a href=" http:// www.91se91.com/news/ index_c.asp "luxury" /a "in 2014 is expected to shrink by 4%-6% compared with last year. This shows that the luxury expenditure of the Russians in both domestic and European major tourist cities has declined.

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< p > the purchasing power of Russians in the European Union countries has significantly weakened in the first five months of this year, according to data from Global Blue global blue Union, a travel rebate service group.

Among them, the UK recorded a 20.1% decline, < a href= "http:// www.91se91.com/news/index_p.asp" > Germany < /a > year-on-year decline of 15.8%, Italy and France respectively reduced by 12.8%.

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< p > according to the total consumption in 2013, Moscow accounted for 59% of the total in the capital and 5% in 2014.

St Petersburg accounts for 16% of the country's luxury consumption, ranking second.

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Armando Branchini, vice president of the P Altagamma foundation, believes that the vulnerability of Russia's economic structure will bring greater damage to the geopolitical crisis than it will eventually solve and will continue to affect the luxury industry for many years.

He expects Russia to turn around after the 2017 luxury tariff cut.

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