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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The luxury goods market to return to growth in 2017

For the first time since the financial crisis of 2008, the global market for personal luxury goods in 2016 failed to grow, stalling at €249 billion (about $258 billion). According to a report on the global luxury market by management consulting firm Bain & Company, only it won’t look anything like the boom years from 2010 to 2015, when global sales of such goods jumped 45%, fueled by Chinese consumers with high-end appetites. The slowing of China’s economy and its government’s ongoing crackdown on corruption, paired with turmoil in the US [...]

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