EU’s largest ever trade deal is good news for luxury brands
17/07/2018
This is the largest trade deal ever negotiated by the EU. It will create a trade zone covering 600 million people with a combined income of nearly one-third of global GDP.
It is certain to be good news for European companies making luxury goods, including high-end handbags and shoes. These are all companies for whom Japan has long been an important export market and for whom access to Japanese consumers will now be easier.
In 2017, luxury group Kering achieved sales revenues in Japan of almost €1.3 billion, an increase on the previous year of 5.3%. Studies by analysts at Bain and Altagamma put the total value of the luxury goods market in Japan at €20 billion, saying it is the second most-important single-country market for these products (after the US) and accounts for 8% of the total global market.
Both parties said the new free-trade agreement “sends a clear message that the EU and Japan stand together against protectionism”.
Image shows an Alexander McQueen boutique in Tokyo.
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