Chinese consumers dominate the luxury market
According to the 17th edition of Bain & Company’s annual Worldwide Luxury Market Monitor, which explored the latest trends and global market data, in 2018, Chinese consumers have continued to dominate the luxury goods market.
At the head of worldwide positive market growth for some time, purchases in China between 2015 and 2018 have contributed to doubling the growth compared to their foreign expenditure.
The global expenditure of Chinese consumers has continued to grow and is estimated to be around 33% of global spending for luxury, compared to 32% last year. And consumption? In China, the rate has grown by 9%, one figure more than in 2017.
Sales of luxury image products have grown by 18% equal to €32 billion at the current exchange rate, mainly led by a growth in demand rather than price increases.
And so, according to the study, luxury goods purchases in Japan have slackened off slightly urging international brands to find new solutions to encourage buyers back to the stores. At the same time, however, retail sales have increased by 3% reaching €22 billion. The result: tourists in Japan consume more and are causing brands to re-think their distribution models.
Lastly, while in the rest of Asia retail sales have grown by 7% to €39 billion mainly due to growth in South Korea, in Europe they have slowed and in the Americas they have risen by 5%, equal to €80 billion at the current exchange rate.