“Luxury sales in China have increased by US$9.6 billion in the last five years and aside from the US, the top luxury market in the world with US$18.6 billion in sales, no other market came even close to that growth,” said Fflur Roberts, Head of Luxury Goods Research at Euromonitor. “However, this impressive growth fizzled towards the end of 2013, leading many luxury brands to question their strategy for China and other emerging markets.”
Key findings from Euromonitor’s luxury goods research:
- US remains the largest global luxury market valued at US$78 billion in 2014, with luxury spending more than double Japan in second place
- India remains the fastest growing market in percentage terms having increased by US$1 billion in the last 5 years (98% in real terms)
- China drops from 3rd to 4th place in the global rankings following China’s slowing economic growth and a government clampdown on extravagant consumption and luxury-gifting
“We expect to see more spending by wealthy Chinese tourists outside Mainland China as well as amongst Chinese diasporas. Many high-income consumers from the mainland are likely to look to relocate overseas, with the US, Europe and Canada top choices for a new home. As they move, so will their buying power,” continues Roberts.
|A McLaren MP4-12C sedan parked along Scotts Road, Singapore.|
Read about the most expensive foods in Singapore here.