A recent survey states thatglobal millionaires have increased to 8.2 million. So, whats the market forluxury products?
''Luxury' is a broader segmentthan what anyone can define. It includes various products ranging from clothes,footwear, jewellery, watches, leather goods, and many others. Global luxurymarket is now undergoing rapid transformation. Industry analysts predict themarket to grow and reach $2 trillion USD by 2010, of which US alone will constitute 50% of the worldwide market.
Luxury market is currently on thegrowth trajectory and is seeing a continuous exuberance. Many aspectscontribute to the dynamism of the market. Changes in the income level of thepeople, increasing families with dual income, and transformations in thepreferences, and life style of the consumers have attributed to this change. Strongpolarizations of the buyers for specific products also influence the market. Individual,personalized, high-touch and a highly customized marketing satisfying the needsof the customers lure them to buy the products.
Luxury Apparels and Designerwears:
Global market for luxuryapparels is seeing a growth of 15% per annum. This is higher comparatively overthe growth of other apparels. Growth will be fuelled by various countries withgrowing economies whose consumption for luxury products outweigh salary andluxury options. EU and US will continue to set global trends.
Fashionable designer wears are nolonger available only for celebrities. Fashion trends are now global due to theawareness created by media, and globalization, moving beyond class and socialstatus. The segment is benefited by increase in disposable incomes,postponement of marriage, and growing number of individual families with dualincome. Even people who are not from the creamer sections of the society willtry to have a couple of signature luxury apparels in their wardrobes.
Key Players of the LuxurySegment:
Luxury brand owners are activelygearing up to meet the challenges of the ongoing recession, and the competitionfor the coming year. Middle East sees good potential for luxury products with apredicted growth rate of 2%. Giorgio Armani and Gucci are the most desirablebrands followed by Versace, and Christian Dior. Polo Ralph, Coach, LouisVuitton, Couture, and Tiffany & Co, are a few more prominent brands in themarket. Brands are reassessing their market strategies to take tackle the downturn and come out even stronger than before.
However growth prospects theindustry sees, still, the industry is not an unmixed blessing. The impact ofglobal turmoil, the pangs of financial crisis has affected the luxury market aswell. High operational costs and intense competition due to globalization posea real threat to the luxury retailers. To ride the tide, brands cut theiroverhead costs, while retailers are investing in the products of customerschoice with a hope of recovery.
Worldwide market for luxury itemsis expected to reach a prominent position in the global arena, and is furtheranticipated to remain so, as affluent customers have enough money, and time toindulge themselves in opulence.
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