Asia will rebound to account for more than half of the luxury
Asia will rebound to account for more than half of the luxury goods market within a decade, driven by rapid growth in household incomes, according to the Economist Intelligence Unit.
The continent, which currently accounts for around two-thirds of the market, has seen a slowdown in its luxury goods sales in recent years, which has “alarmed” the high-end brand houses.
But a new report from the EIU, Rich Pickings, said there are “strong prospects for a long-term recovery” in Asia and predicts it will account for 50%-60% of luxury revenue within 10 years.
While China is expected to be the main driver, with nearly 13m households on an average income of $150,000 (£96,720) or more by 2030, India will also be key, with more than 30m households on annual incomes exceeding $50,000.
The report forecasts that India will become a “key battleground for luxury brands as the retail market opens up to foreign investment”.
A wealthy elite has also emerged in Indonesia on the back of the global commodities boom.
Meanwhile, Malaysia and Thailand are becoming shopping destinations, the EIU said, with the former benefiting from low import duties on luxury goods.
Savvy shoppers will also dent growth, as Asian consumers start to buy more luxury goods abroad.