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Global luxury industry to expand further

Man with suit and watch on hand

 

Research reveals that the luxury industry is expected to undergo sustainable long-term expansion off the back of the slow, but steady, growth posted over the past few years.

Bain & Company’s 2014 Luxury Goods Worldwide Market Monitor, released last week (October 14), reveals that the value of the global luxury market is on track to reaching $282 billion in 2014.

According to Bain’s report, the following markets have grown in the past year:

–          Luxury cars: The luxury car market has increased by ten per cent from 2013, as a result of an increase of emerging markets tapping into the industry. With a large number of customers personalising their cars, prices for vehicles are dramatically increasing

–          Hotels: The hotel industry has enjoyed a steadily growing demand, with a nine per cent increase. As a result of younger generations seeking luxury lifestyles, the hotel industry was able to widen its target audience and increase its prices

–          Yachts: Yachts have had a slow, but positive, growth in the past year, with a two per cent increase in 2014. Although the market did not experience a sizable growth in the past year, the increasing number of yacht shows taking place in the region indicates that this will not be the case for much longer

–          Private jets: Aiming at UHNWIs, private jet sales have increased by nine per cent in 2014. Contrary to recent reports, luxury customers seem to be increasingly interested in the private jet industry. With a large number of affluent travellers now looking for ‘alternative’ experiences, LuxuryMena.com looks forward to seeing whether the industry will continue to do so well in the future

–          Accessories: Growing by four per cent in 2014, the luxury accessories market captures 29 per cent of the luxury industry, surprisingly more than apparel and hard luxury, the next two largest luxury categories, according to Bain & Company

“We are seeing strong polarisation among luxury brands and the fast growth of an ‘alternative to luxury’ segment – those upper premium brands ‘winking’ at luxury ones and promoting an image of status that exceeds that of their products,” explains Claudia D’Arpizio, partner of Bain & Company and lead author of the study, in a press statement.

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