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.