A recent survey states that global millionaires have increased to 8.2 million. So, whats the market for luxury products?
''Luxury' is a broader segment than what anyone can define. It includes various products ranging from clothes, footwear, jewellery, watches, leather goods, and many others. Global luxury market is now undergoing rapid transformation. Industry analysts predict the market 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 the growth trajectory and is seeing a continuous exuberance. Many aspects contribute to the dynamism of the market. Changes in the income level of the people, increasing families with dual income, and transformations in the preferences, and life style of the consumers have attributed to this change. Strong polarizations of the buyers for specific products also influence the market. Individual, personalized, high-touch and a highly customized marketing satisfying the needs of the customers lure them to buy the products.
Luxury Apparels and Designer wears:
Fashionable designer wears are no longer available only for celebrities. Fashion trends are now global due to the awareness created by media, and globalization, moving beyond class and social status. The segment is benefited by increase in disposable incomes, postponement of marriage, and growing number of individual families with dual income. Even people who are not from the creamer sections of the society will try to have a couple of signature luxury apparels in their wardrobes.
Key Players of the Luxury Segment:
Luxury brand owners are actively gearing up to meet the challenges of the ongoing recession, and the competition for the coming year. Middle East sees good potential for luxury products with a predicted growth rate of 2%. Giorgio Armani and Gucci are the most desirable brands followed by Versace, and Christian Dior. Polo Ralph, Coach, Louis Vuitton, Couture, and Tiffany & Co, are a few more prominent brands in the market. Brands are reassessing their market strategies to take tackle the down turn and come out even stronger than before.
However growth prospects the industry sees, still, the industry is not an unmixed blessing. The impact of global turmoil, the pangs of financial crisis has affected the luxury market as well. High operational costs and intense competition due to globalization pose a real threat to the luxury retailers. To ride the tide, brands cut their overhead costs, while retailers are investing in the products of customers choice with a hope of recovery.
Worldwide market for luxury items is expected to reach a prominent position in the global arena, and is further anticipated to remain so, as affluent customers have enough money, and time to indulge themselves in opulence.
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