Global luxury goods sales to hit $405bn by 2019, US still largest market, China drops to fourth
Global luxury sales are expected to grow 19% to $405bn by 2019, according to market research company Euromonitor International. The report said US remains the largest global luxury market valued at $78bn in 2014, with luxury spending more than double Japan in second place. China, meanwhile, has dropped from third to fourth place in the global rankings following China’s slowing economic growth and a government clampdown on extravagant consumption and luxury-gifting.
Western Europe remains the largest region with $113bn in sales supported by tourism, with core luxury shopping hot spots such as Paris, Milan and London having a major impact
However, economic sanctions in Russia and the prevailing political instability across the region are holding back luxury sales in Eastern Europe, Euromonitor said
India remains the fastest growing market in percentage terms having increased $1bn in the last five years, or by 98% in real terms.
“Luxury sales in China have increased by $9.6bn in the last five years and aside from the US, the top luxury market in the world with $18.6bn in sales, no other market came even close to that growth” said Fflur Roberts, Head of Luxury Goods Research at Euromonitor.
“However, this impressive growth fizzled towards the end of 2013, leading many luxury brands to question their strategy for China and other emerging markets.
Roberts, however, added: “We expect to see more spending by wealthy Chinese tourists outside Mainland China as well as among Chinese diasporas. Many high-income consumers from the mainland are likely to look to relocate overseas, with the US, Europe and Canada top choices for a new home. As they move, so will their buying power.”