Report shows positive trend for Poland’s luxury market
KPMG has recently released a report on the Polish luxury market, with some key findings related to the Polish luxury consumer profile This year, Poles may spend up to EUR 6.75 billion on luxury goods, potentially raising this figure by up to a half within the next 2–3 years. Poles, who are getting richer at a fast rate, are well aware of major luxury brands and willing to spend a substantial proportion of their income on items with a high price tag.
During the past 10 years the number of affluent and rich Poles, i.e. those earning over EUR 1,775 a month (gross), has more than doubled. In 2010 the number of such people may even reach 590,000. This group includes approx. 50,000 of the most affluent Poles, the so-called HNWI (High Net-Worth Individuals), with liquid assets exceeding USD 1 million . The KPMG survey has demonstrated that affluent and rich Poles are the main buyers of luxury goods in Poland. With an estimated average monthly income of EUR 3,750, they are responsible for 60% of all spending on luxury goods in the country. This group is expected to spend an estimated figure of up to EUR 4.025 billion on luxury goods this year.
While the luxury car segment experienced a perceptible decline in sales in 2009 (a similar trend affected the auto-motive industry as a whole), the jewellery segment recorded growth. Most clearly, many customers treated the purchase of jewellery as a good investment for uncertain times. However, when thinking about the next few years, it is the auto-motive companies that display more optimism and anticipate a 30% growth in sales by 2012 whereas clothing and jewellery brands expect a less pronounced growth of just over 20%.
The KPMG report also found that Versace and Hugo Boss enjoy the highest awareness among luxury clothing brands in Poland. Both were mentioned by 80% of the respondents in total. More than 70% demonstrated awareness of Prada, Dolce & Gabbana and Lacoste. Brands with a long tradition and high reputation enjoy by far higher awareness. Awareness of clothing brands is similar among both sexes, with some slight differences. More women are familiar with brands such as Burberry, Marc Jacobs, Max Mara and Prada.
On the other hand, awareness of Gucci and Hugo Boss was higher among men. Given the structure of the survey sample, labels which are strong in men’s clothing scored higher in this question. As with auto-motive brands, clothing brands are least known to the oldest respondents, aged over 45. Furthermore, all brands covered in the study are more familiar to the highest earners in the sample.
The Polish clothing label Simple, with awareness of 30%, came far behind many other brands in the ranking. Still, it enjoys a higher awareness than some renowned international labels such as Marc Jacobs or Ermenegildo Zegna.