Luxury sales in Germany driven by foreigners

As reported by CPP Luxury Industry Consultants Ltd., Germany’s luxury market has been seeing a slow down in sales to locals, more wealthy Germans buying abroad and proving more cautious about their purchases while focusing on the investment factor. 2012 has been a stagnant year in terms of sales across all luxury sectors, Germans spending less on luxury products and services. Even when travelling abroad, Germans would allocated lesser budget for hotels etc.

A recent study by the Meisterkreis, the association of German luxury brands, shows that Germany was an increasingly attractive destination for a new class of very wealthy tourists. Mainly tourists and business travelers from Asia and Arab nations spent around €5 billion in Germany on luxury goods in the first nine months of 2012, an increase of 52 percent over the same period last year. Accounting for 20 percent of high-end sales this year, “tourists are the biggest drivers of the industry,” Clemens Pflanz, managing director of Meisterkreis told the Welt am Sonntag daily newspaper.

Prada and Miu Miu, recently opened at KaWeDe, Berlin