Asia to account for half of luxury goods market
By FashionUnited
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The region,
The strongest growth region is to remain China, as the country is thought to have nearly 13m households with a disposable income of 150,000 US dollars or more by 2030. India will be hot on the heels of China, with more than 30m households expected to have annual incomes exceeding 50,000 dollars.
The report forecasts that India will become a “key battleground for luxury brands as the retail market opens up to foreign investment".
A wealthy elite has also emerged in Indonesia on the back of the global commodities boom. Meanwhile, Malaysia and Thailand are becoming shopping destinations, the EIU says, with the former benefiting from low import duties on luxury goods.
However, not all countries will see growth. In particular, Japan is suffering from a weak currency and fragile consumer confidence, which the report said will hamper its potential.
The newly wealthy are also savvy and have the resources to travel, Asian shoppers may buy luxury goods when abroad to avoid the high level duties. This is expected to have an impact on growth.
Image: Louis Vuitton Asia
Asia
EIU
Luxury Goods