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Five key trends in global luxury goods in 2014

European Brand New Clothes Shop

 

The international luxury goods market holds strong potential, reveals Euromonitor International.

According to the UK-based market intelligence firm’s updated luxury goods market research database, which was released last week, these are the five key trends for 2014:

  1. The outlook for the luxury goods industry remains optimistic, with forecast sales set to reach $405 billion by 2019
  2. The US remains the largest luxury goods market in the world, valued at $78bn this year
  3. Designer apparel accounted for the most sales of all luxury categories in 2014
  4. Luxury jewellery and timepieces grew by 63 per cent and 42 per cent, respectively, in the past five years
  5. China drops from third to fourth place in the global rankings, due to the “government clampdown on extravagant spending” and the “slowing economic growth of the country”

According to Bain & Company, worldwide luxury goods revenues are expected to grow 50 per cent faster than the growth of the global GDP, which is on track to break the $315.6 trillion sales threshold by mid decade.

“Globally, it is clear that luxury will expand, especially in Asia, because of the rise of the middle class. Luxury, today, is driven by economic growth in emerging countries. In the Middle East, the fact that the economy is in a very good shape with people that have large assets increases the probability of growth,” explained Remy Oudghiri, director of trends and insights at Ipsos Mena, in an interview with LuxuryMena.com earlier this year.

With such a strong predicted growth over the next coming years, brands must connect and communicate with their customers to ensure they hold strong and trusting relationships.

 

 

 

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