It seems there is no limit to the growth of the luxury industry. This year the sector will maintain the upward trend of previous years, with a rise of between 2 and 4%. This has been forecasted by the FondazioneAltagamma, according to a study they’ve conducted this spring together with the consultancy Bain&Co, which has been made public during the month of May.
In 2014, the global sales of luxury reached the 224,000 million euros, representing an annual increase of 3% (4% excluding the effects of exchange rates). In nominal terms, it’s an all time high.
Devaluation of the euro
After recording a fall in 2009, the high-end market has grown back. The pre-crisis levels have already been exceeded and the turnover nowadays is 46% higher than during those times.
This year things should still go further thanks to the devaluation of the euro, which makes prestige European products more competitive goods in international markets.
“The devaluation of the euro benefits the European prestigious brands”
The importance of tourism
The engine of this industry is tourism, as tourists suppose half of the demand of the luxury industry in the world. Being the Chinese the ones who pull the strings as they represent the 30% of luxury buyers. Generally, the luxury market in Western Europe has benefited from Asian tourism. This has offset the decline in demand from Russians
“30% of luxury buyers in the world are Chinese”
Concerning Spain, single-digit growth is expected this year. "We believe the market will reach 4,000 million euros, which is very close to 2010 levels, after years of disappointing results," explain sources of Bain&Co. The increase on the demand of luxury properties in Barcelona
is one of the indicators of this new trend.
"The Spanish economy experienced a recovery above expectations. At the same time, Italy is starting to boot. Milan, under the impetus of the Expo, is now the number one shopping destination in Europe, " affirms the report.
In Japan, thanks to the devaluation of the yen, the Chinese tourists increased in a 83% in 2014, which triggered the luxury sector (with a rise of 7%).
Many more buyers
In the last 15 years, affirms the study, the sector of premium brands has changed radically. The number of buyers in the world has risen from 140 million to 350 million (equivalent to the population of Europe).
However, this increase has been accompanied by a better understanding. Fans of big brands now also look for opportunities and don’t buy just for buying. In fact, 30% of sales now come from special offers.
If we examinethe products, accessories remain the favorite ones. In this section, shoes prevail, with a strong increase in demand for premium men's footwear. Luxury from head to toe.