Is The International Market Ready For Luxury Business Expansion?

The electricity supplier is the biggest opportunity for the luxury market. Which regions are the most potential emerging markets? According to the data, per capita GDP has exceeded 24 thousand US dollars, reaching 65% of the income level in Western Europe based on purchasing power.

Obviously, the great opportunity for luxury electric providers is reiterated.

As everyone knows,

Never been willing to accept the electricity supplier.

Who can blame them? These are famous brands with proud historical heritage and long standing reputation.

For some brands, the electricity supplier stands on the opposite side of Luxury Retailing. It is a popular marketing method, lacking exclusiveness, intimacy and communication.

It is reported that in fact, even if the global online retail business turnover increases by 17% annually, about 40% of high-end brands are reluctant to sell their products online.

But even the most conservative brands are learning to embrace the electricity supplier because they know that the next generation of luxury consumers is here.

They are younger, more like the Internet, and more inclined to convenience and practicality.

In fact, a McKinsey report points out that the luxury business turnover is expected to reach US $21 billion in the next five years.

Moreover, the growth of luxury electric business scale seems to be faster than that of other electricity suppliers.

"The electricity supplier is seen as an opportunity for the luxury market," Lucie Greene, global director of JWT Intelligence, recently said.

Launching luxury e-business websites in the United States is one thing, and it will be another challenge to stand out from local competitors in the global market.

Overall, the size of the global electricity supplier is expected to reach 2 trillion and 300 billion in 2018, with most of the growth coming from overseas markets.

So,

Are you ready for the expansion of luxury business?

Based on recent research and data analysis, the Luxurydaily analysis identified four potential emerging markets, and luxury brand giants largely expanded online luxury business in these areas.

The first market is India. In recent months, the decline in crude oil prices may have an impact on the BRICs, except in India.

Low fuel costs in India will have a positive impact on economic growth.

This also indicates that it will be conducive to the opening of luxury electric business.

India's 300 million Internet users are also loyal fans of smart phones.

The Internet users of smart phones and tablet computers account for 70% of the total Internet users in the country.

Electricity providers can no doubt thrive here.

According to a report, the scale of India luxury electric business market will increase to 25 billion US dollars in 2016, and the annual compound growth rate will be around 25%.

Research points out that

Accessories, watches and electronic products will all be sought after.

In addition, India's online luxury market is not very competitive, which is good news for water users.

Of the 500 top luxury brands in the world, only 30% have developed the India market.

In contrast, 70% of China's luxury goods are among them.

India is undoubtedly an ideal market for developing luxury electric business in the context of the growing middle class, good regulatory environment and foreign direct investment.

Iran, the nameless market has huge market potential.

Iran is now one of the fastest growing destinations for luxury tourism in the world.

As Bvlgari CEO Jean-Christophe Babin recently said, "people in Iran are used to luxury.

Iran will become the next great power in the Middle East.

Bvlgari is planning to expand its market here. It has a good reason to support this decision: the per capita disposable income is very high compared with other countries.

Iran's per capita GDP is US $16500, far exceeding China, India and Brazil.

By combining the high GDP, low competition, high Internet penetration rate (55%), high mobile phone penetration rate (126%) and people's desire for luxury goods, the giants can get the secret of the success of the electricity supplier.

Besides, Thailand is the largest luxury market in Southeast Asia.

Last year, its luxury consumption amounted to US $2 billion 500 million.

The relatively low housing cost helps to promote luxury consumption while higher disposable income of consumers.

Thailand residents aged between 30 and 34 account for the largest proportion (20.5%) of the total population. They earn more than 150 thousand dollars a year.

Residents aged 35 to 39 account for 18.6% of the total population, and their affluence is also increasing year by year.

Thailand's Internet penetration rate is 54%, very impressive.

Mobile phone users account for over 150%.

Thailand has become the largest electricity supplier market in Southeast Asia, and some analysts believe that mobile e-commerce is the last effective way for luxury retailers to achieve sales surging.

There is great potential in the Thailand market, especially for those who have strong persuasion and can attract smart phone users to jump into the trend of the electricity supplier.

Unlike other countries plunged into recession, Poland advanced into the 2015.

According to Brookings data, per capita GDP has exceeded 24 thousand dollars based on purchasing power, reaching 65% of the income level in Western Europe.

Next year, Poland's luxury spending is expected to be around $3 billion 400 million.

Interestingly, at the same time, its electricity supplier expenditure will increase to 12 billion US dollars.

Obviously, the great opportunity for luxury electric providers is reiterated.

The Internet penetration rate in Poland is also very impressive, reaching 67%.

For those who want to enter an economic stable and safe European market, the Poland market provides them with an ideal land.

Should luxury brands abandon the BRICs?

As the stability and growth conditions of most BRICs have gradually weakened, should luxury brands abandon the expansion of electricity providers in these sluggish markets? This may be tempting. Luxurydaily analysis objected to this. After all, these economic upheavals will eventually pass.

In addition, smart consumers in these countries also accept non-traditional online shopping behavior.

For example, Luxurydaily found that quite a large number of Brazil consumers would buy luxury goods on a Portuguese website run by non Brazil companies.

Why? Because these websites offer better choices, and buying in these places can save high luxuries tax.

Chinese consumers are equally smart, and they will buy overseas goods through e-commerce.

This applies especially to luxury brands.

Now, many Chinese will go to Korea to buy luxury goods.

In 2020, luxury goods consumers in China are expected to spend $29 billion on luxury goods in Korea.

With the weakness of the Russian market, the Confederation of independent states of its neighboring countries has gradually entered the stage of history.

Residents here often shop on Russian e-commerce platforms.

For example, so far this year, a customer's Russian website has generated over $8 million in revenue, but the source is not Russia itself, but from Ukraine.

Nowadays, luxury brands are the time to seize the opportunity of electric business and strive for the next global expansion.

With the rapid growth of Internet and smartphone users in the world, the B2C electricity supplier will refresh its turnover every year. Participating in the expansion of these emerging markets will be a bold decision, but at the same time, it is also an opportunity to ensure that new customers and revenues increase and business turnover will continue to grow.

Bernstein, senior luxury analyst at MarioOrtelli, said luxury companies have been reluctant to adapt to the digital trend.

However, as the growth of the emerging market is weak and the industry gains slow down, the company must carry out reform or else it will face a deadlock.

62% of the sales of luxury goods will be affected by the digital trend, which will lead to a reduction in the sales of pure entity stores.

McKinsey found that almost all the global luxury market growth in 2014 came from the electricity supplier.

In 2009, the growth rate of luxury business turnover was only 2%, and now this figure has climbed to 6%.

By studying the "shopping behavior" of 7000 luxury consumers in the world, it is found that 3/4 of luxury consumers will be influenced by digital information, including web browsing and social media.

McKinsey points out that perhaps the reason why luxury brands are less focused on the performance of e-commerce is that the target users of brands are usually older.

But the report finds that among the luxury consumers, the baby boomers spend the same amount of time on the Internet as the millennials, and have the same number of mobile devices.

In other words, the rich baby boom generation is the target consumer of the electricity supplier as well as the new generation.

An industry analyst said: "smart phone is a trigger point, fundamentally changing the behavior of users, this is very terrible."