Asia will account for 50% of world’s luxury market
A new study by the Economist Intelligence Unit, entitled Rich Pickings, has found that Asia will account for more than half of the luxury goods market in the world within a decade, driven by rapid growth in household incomes.#
The report says that despite there is a current slowdown in some economies, there were “strong prospects for a long-term recovery” in Asia which will have a share of 50 to even 60 per cent of the global luxury revenue within 10 years.
Luxury firms in Asia have continued to deliver strong sales, as opposed to stagnating Europe and North America. While China is expected to be the main driver, with nearly 13 million households on an average annual income of $150,000 or more by 2030, India will also be key, with more than 30 million households on annual incomes exceeding $50,000 per annum.
Other countries were the wealthy elite is growing are Indonesia, Thailand and Malaysia. Thus, Western luxury firms are advised to increasingly tailor their business plans towards Asian culture, the report said.
All in all, the report predicts that that the number of households in Asia with an annual income of more than $150,000 will rise from 2.5 million at present to nearly 27 million by 2030.
However, among the challenges luxury companies have to face in Asia is the battle to suppress cheap counterfeit goods and fake items, led by China. According to the UN, China accounted for 75 per cent of all fake goods seized globally between 2008 and 2010.
A new study by the Economist Intelligence Unit, entitled Rich Pickings, has found that Asia will account for more than half of the luxury goods market in the world within a decade, driven by rapid growth in household incomes.# The report says that despite there is a current slowdown in some economies, there were “strong prospects for a long-term recovery” in Asia which will have a share of 50 to even 60 per cent of the global luxury revenue within 10 years. Luxury firms in Asia have continued to deliver strong sales, as opposed to stagnating Europe and North America....
A new study by the Economist Intelligence Unit, entitled Rich Pickings, has found that Asia will account for more than half of the luxury goods market in the world within a decade, driven by rapid growth in household incomes.#
The report says that despite there is a current slowdown in some economies, there were “strong prospects for a long-term recovery” in Asia which will have a share of 50 to even 60 per cent of the global luxury revenue within 10 years.
Luxury firms in Asia have continued to deliver strong sales, as opposed to stagnating Europe and North America. While China is expected to be the main driver, with nearly 13 million households on an average annual income of $150,000 or more by 2030, India will also be key, with more than 30 million households on annual incomes exceeding $50,000 per annum.
Other countries were the wealthy elite is growing are Indonesia, Thailand and Malaysia. Thus, Western luxury firms are advised to increasingly tailor their business plans towards Asian culture, the report said.
All in all, the report predicts that that the number of households in Asia with an annual income of more than $150,000 will rise from 2.5 million at present to nearly 27 million by 2030.
However, among the challenges luxury companies have to face in Asia is the battle to suppress cheap counterfeit goods and fake items, led by China. According to the UN, China accounted for 75 per cent of all fake goods seized globally between 2008 and 2010.
