Serbia and Poland, the luxury markets with the highest potential for growth
CPP‘s extensive research througout 2010 has once again confirmed previous estimates regarding the increased potential of Serbia and Poland as the most dynamic luxury markets in Central and Eastern Europe. CPP’s luxury market reports 2010 which will be presented at the 2011 edition of BUSINESS OF LUXURY FORUM event on March 28th, reveal not only the low penetration of luxury brands especially in fashion, hospitality and SPA but also the increased buying power of the wealthy segment of population in the two countries.
The largest market in Central and Eastern Europe and the second largest market in the E.U., Poland has had a slow start of its luxury market, mostly due to the profile of its luxury consumer as well as a major focus on mass market retail. Polish nationals are not only more conservative than Ukraineans, Romanians, Bulgarians or Russia, but they are also more sophisticated in their taste. The lack of local luxury retail has created a habit for wealthy consumers to travel abroad for all their luxury purchases except luxury cars and fragrances.
Despite many similarities between the Serbian luxury consumer and those in Ukraine, Romania, Russia and Bulgaria, especially in the appetite and affinity for luxury branded products, Serbian wealthy consumers are more educated and their need to show off is somehow part of their lifestyle. Social life is much more dynamic than in most other countries with a large number of outings events, from charity events, launches, parties, opera or theatre etc. Serbia’s capital city of Belgrade is probably singular in its numerous art galleries and concept stores (fashion, lifestyle, entertainment, vintage). Serbia is also the Eastern European country with the lowest penetration of international luxury chain hotels, with Hyatt being the only five star international player.