US luxury spending eclipses the rest
08/10/2014
The US remains the largest global luxury market valued at $78 billion, with luxury spending more than double Japan in second place. China drops from third to fourth place behind France following its slowing economic growth and a government clampdown on extravagant consumption and luxury-gifting.
Economic sanctions in Russia and the political instability across the region are holding back luxury sales in Eastern Europe, while India is the fastest growing market in percentage terms, having increased by $1 billion in the last five years (98%).
“Luxury sales in China have increased by $9.6 billion over the last five years,” 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.
“We expect to see more spending by wealthy Chinese tourists as well as among 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.”
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