Mandarin Oriental Hotel Group has today announced that it will manage a luxurious hideaway ...
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With the aim of reaching 40 mono-brand stores by the end of 2012, Italian luxury menswear house ...
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Last week, the Royal Family of Qatar, purchased Paul Cezanne's "The Card Players" ...
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Bulgari Hotels & Resorts, a joint venture between Marriott and the Italian jewellery ...
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CPP announces first luxury market report on SLOVENIA
Analysis 25 December 2009
During the month of December 2009, CPP Management Consultants Ltd, sole Central and Eastern European luxury industry consultancy, has conducted a thorough research of the Slovenian luxury market with the aim of identifying its potential. CPP has research all luxury market segments in Slovenia - hospitality, fashion, accessories, jewelry & watches, organic/gourmet, travel and auto.
A market of only 2 million inhabitants, Slovenia has been one of the most successfull economies in Central and Eastern Europe, being the first and until now only economy in the region to have adopted the EURO as its national currency. However, the Slovenian luxury market presents less opportunities than many other markets in Central and Eastern Europe, such as Serbia, Romania or Bulgaria.
With the right business models and the right marketing & sales strategy, the luxury market segments with biggest potential for development in Slovenia are: hospitality, fashion & accessories, organic/gourmet and travel. Segments such as perfumery/cosmetics, auto, fine wines & spirits and watches & jewelry are already fully developed most international luxury brands being already present.
Particular attention should be paid to the luxury consumer profile in Slovenia which is very different from other Central and Eastern European countries. In comparison with Hungary and Czech Republic, Slovenia's luxury market targets over 70% locals and the rest foreigners, while in the other 2 countries the percentages are reversed. While Prague and Budapest benefit from a solid segment of wealthy foreign travellers, the Slovenian capital of Ljubljana and its major holiday destination towns such as Portoroz and Bled attract a medium level clientele, mainly from Italy, Netherlands, Germany. For instance there is only one five star hotel in Ljubljana owned and managed by a local company and no other international luxury chains. The few five star hotels in Bled or Portoroz also attract a medium to superior client base, rates being lower than many other destinations in the region.
In comparison with Romania, Bulgaria and Serbia, the Slovenian local luxury consumer is motivated more by the quality and investment features of a luxury branded product or service rather than the show off, social identification factors. That is why, the most successful fashion brands in Slovenia are those which have strong accessories collections and high quality products using quality materials such as leather etc. Special consideration should be paid to the lifestyle of the wealthy Slovenian consumers which, due to the lack of local presence of many top luxury brands, prefer to travel to make their shopping abroad. Also, social life is less glamorous and many Slovenians attending opera, theatre or charity gala events would not dress up such as their counterparts in the other Eastern European countries.
A summary version of the SLOVENIA LUXURY MARKET REVIEW is available on request. E-mail office@cpp-mc.com