At a recent fashion summit in Florence, Italy, luxury designers were downbeat. Michele Norsa, CEO of Salvatore Ferragamo, the Italian shoemaker, said: "Markets are very volatile. We must keep a cool head and define our forecasts day by day. ...The first part of the year will be slower. In the second part there will probably be a recovery. These are the signs we are receiving from all our markets." Michele Tronconi, the head of Sistema Moda Italia (SMI), Italy's fashion body, added, "Orders of goods to be delivered in the coming months have shrunk and I don't expect this trend to change soon."
The new approach of China's ruling government won't change Chinese attitudes toward luxury immediately, however. A study by the Luxury Institute suggests 43 percent of wealthy Chinese consumers plan to spend more on luxury products in the coming year, vs. 10 percent of Japanese and 9 percent of Americans. As one example of the Chinese taste for expensive goods, sales of luxury cars skyrocketed over the past two years, although that trend is expected to cool. Recent research indicates that Chinese luxury consumers will account for 40 percent of the worldwide new luxury market between 2010 and 2015.
In fact, the real future for luxury goods may not be in Europe, the U.S., or Japan, but rather in emerging markets. Research by Euromonitor International suggests it is the "strength in emerging economies" like Brazil, Russia, India, and China, commonly referred to as the "BRICs," that will be driving demand for luxury goods. The BRICs "now account for 11% of total luxury sales, up from just 4% in 2004," according to Euromonitor International. "However by 2017 this figure is set to increase further by 78% in real value terms to reach US$59 billion, representing almost 16% of the global luxury goods market."
Via : www.brandchannel.com