- Title: World luxury goods sales growth seen up 2-4 percent in 2017 - Bain
- Date: 30th May 2017
- Summary: PARIS, FRANCE (MAY 29, 2017) (REUTERS) PEOPLE COMING OUT OF DOLCE & GABBANA BOUTIQUE "CHANEL" SIGN ON BOUTIQUE EXTERIOR "DIOR" SIGN ON BOUTIQUE EXTERIOR "YSL" (YVES SAINT LAURENT) SIGN ON BOUTIQUE EXTERIOR ASIAN TOURISTS ENTERING SAINT LAURENT BOUTIQUE SIGN READING "SAINT LAURENT PARIS" PARIS, FRANCE (MAY 30, 2017) (REUTERS) EIFFEL TOWER SEEN FROM AMERICAN GLOBAL MANAGEMENT CONSULTING FIRM BAIN & COMPANY'S OFFICE TERRACE FRENCH FLAG (SOUNDBITE) (English) EMEA DIRECTOR OF LUXURY GOODS AND DISTRIBUTION CENTRE AT BAIN & COMPANY, MARC-ANDRE KAMEL, SAYING: "Europe is definitely the champion of this renewed growth. It seems that the impact of terrorism has faded a little bit, tourists are back, Spain is taking advantage of this the most, but also the post-Brexit UK thanks to the devaluation of the pound is also taking advantage of that. Now everywhere, the local consumers are also regaining confidence and you see that in the sales of luxury brands." PARIS, FRANCE (MAY 29, 2017) (REUTERS) "CHLOE" SIGN ON BOUTIQUE EXTERIOR PEOPLE ENTERING CHLOE BOUTIQUE CHLOE BAGS IN BOUTIQUE CHLOE LABEL ON BAG VARIOUS OF CHLOE SUNGLASSES CHLOE PURSES VARIOUS OF CHLOE APPAREL HANGING ON RACK PARIS, FRANCE (MAY 30, 2017) (REUTERS) (SOUNDBITE) (English) EMEA DIRECTOR OF LUXURY GOODS AND DISTRIBUTION CENTRE AT BAIN & COMPANY, MARC-ANDRE KAMEL, SAYING: "So, China as a market represents 7 to 8 percent of the total retail sales. The Chinese, however, represent 25 percent of the sales globally, and we believe that this number will continue to grow. By 2025, this should represent 35 percent of the total market. What's really interesting is that, in the local market in China, we see a renewed growth actually, and this is probably due in part to the reduced price differential between China and other markets. But we also see that the Chinese tourists are back, especially in Europe they are back, they have more confidence again, and they are buying actually more stuff from the luxury brands in Europe." PARIS, FRANCE (MAY 29, 2017) (REUTERS) ASIAN TOURISTS MILLING IN STREET OUTSIDE BRANCH OF GALERIES LAFAYETTE CATERING TO ASIAN TOURISTS, "WELCOME AND SHOPPING CENTRE" MAN PEDDLING NEWSPAPERS IN CHINESE VARIOUS OF ASIAN TOURISTS ENTERING GALERIES LAFAYETTE BRANCH PARIS, FRANCE (MAY 30, 2017) (REUTERS) (SOUNDBITE) (English) EMEA DIRECTOR OF LUXURY GOODS AND DISTRIBUTION CENTRE AT BAIN & COMPANY, MARC-ANDRE KAMEL, SAYING: "At Bain and Company we are very optimistic about the future of luxury. We believe that the fundamentals for growth are really there. There will be an increase in high net worth individuals, there will be more appetite for luxury products everywhere in the world, so we're really very positive. Now, this being said, brands will have to double down to make sure that they are amongst the winners in their industry. We believe that there will be more and more polarisation between the winners and the losers in this market." PARIS, FRANCE (MAY 29, 2017) (REUTERS) ASIAN TOURISTS BY CHANEL BOUTIQUE GETTING INTO TAXI WITH SHOPPING BAGS PEOPLE WALKING PAST SAINT LAURENT BOUTIQUE LADY WALKING PAST DIOR BOUTIQUE
- Embargoed: 13th June 2017 09:34
- Keywords: luxury goods global sales growth Bain company report 2017 Europe China
- Location: PARIS, FRANCE
- City: PARIS, FRANCE
- Country: France
- Topics: Commodities Markets,Economic Events
- Reuters ID: LVA0016J15FT3
- Aspect Ratio: 16:9
- Story Text: Global sales of personal luxury goods will grow by a stronger- than-expected 2-4 percent at constant exchange rates in 2017, a study by consultancy group Bain & Co and Italian luxury industry association Altagamma showed.
In 2017, total revenue in the sector that includes watches, jewelry, clothes, shoes and leather goods will rise to 254 billion-259 billion euros ($284 billion-$289.25 billion) from 249 billion euros in 2016. Higher spending in Europe and China is outpacing weakness in the United States and southeast Asia, the report released on Monday (May 29) said.
EMEA director of Bain and Company's luxury goods and distribution centre, Marc-Andre Kamel, told Reuters TV on Tuesday (May 30) that "Europe is definitely the champion of this renewed growth," as the impact of waves of militant attacks on the continent has seemingly faded slightly, bringing back more tourists.
Europe is thus expected to be the fastest growing market for luxury goods this year, with sales seen up 7-9 percent.
Bright spots were Spain, seen as a relatively safe destination, and Britain, rendered more affordable to tourists after a post-Brexit slump in sterling, while mainland China was also recovering with 6-8 percent growth, said the report.
Kamel said that although China's market "represents 7 to 8 percent of the total [global] retail sales", it is Chinese buyers who represent 25 percent of overall luxury consumption. By 2025, Chinese consumers should represent 35 percent of consumption, and Asian consumers should account for more than half, according to the study.
In coming years, the luxury market is set to keep expanding at an average annual rate of 3-4 percent to reach 280 billion-290 billion euros in sales by 2020, driven by a growing Chinese middle class and a recovery in more mature markets.
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