Integration between brick-and-mortar and web retailing – a priority for luxury brands

In 2016, the total number of luxury goods and services consumers worldwide reached 415 million, and they spent €860 billion. The tip of the pyramid is made up of 17 million individuals, nearly 4% of all luxury goods consumers. They spend between €36,000 and €50,000 per year in luxury items, and accounted for 29% of the world’s overall luxury goods purchases. According to the BCG‘s study, in 2023 their number will rise to 490 million, and they will spend €1.185 trillion. The market is expected to keep growing, though at [...]

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The future of luxury retail expansion

Luxury hubs such as New York, London, and Paris are very likely to sustain their density of luxury stores. But brands urgently need to examine the efficiency of their existing store networks—especially across Asia, and particularly in light of the effectiveness of e-commerce. Those are among the key findings from new research conducted jointly by The Boston Consulting Group (BCG), one of the world’s leading management consulting firms, and Bernstein, the research arm of AllianceBernstein. The research draws from BCG’s proprietary Metroluxe Index, which assesses opportunities for luxury sales by [...]

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Fitch: China luxury sales improve

China’s recent recovery in luxury spending may boost sales of domestic department-store operators and luxury-goods retailers, including Golden Eagle Retail Group Limited (BB-/Negative), Hengdeli Holdings Limited (B+/RWN), and Parkson Retail Group Limited (B-/Negative), though it may not be enough to offset the effects of structural problems caused by changing spending patterns and competition from new retail formats, according to Fitch Ratings. Reports from international brands such as Coach, Inc. (BBB/Stable), Swatch Group and LVMH suggest luxury spending in China is beginning to recover after a few difficult years caused by [...]

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Sales of luxury Swiss watches dropped by 10% in 2016

Sales of luxury Swiss watches dropped by 10% last year following a crackdown on corruption in China. The Federation of the Swiss Watch Industry said 2016 watch exports fell by more than 2bn Swiss francs (£1.6bn) to SFr19.4bn as the Chinese bought far fewer luxury watches, which have been used to grease the wheels of politics and commerce in the world’s second-largest economy. It was the worst year for the Swiss watch industry since 2009, when sales declined by 22% due to the global financial crisis. The federation said sales [...]

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Iran´s growing appeal as luxury market

The turmoil and instability of several major international luxury brands, Iran is garnering attention for the potential  Bulgari is intending to open shortly in Tehran, the country’s capital, which, according to CEO Jean-Christophe Babin, “represents the next big market in the Middle East.” In 2015, Montblanc’s CEO, Jérôme Lambert, announced that the brand was also seeking partners in Iran. Longines has also expressed a keen interest to open in Tehran. The country has a large young generation which is avid for luxury goods and wants to distance itself from the austerity of the [...]

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