luxury market

China's Growing Appetite for Luxury Labels

Filed under: Wealth

The luxury market in China is booming, so much so it's now the second largest in the world (behind only the United States) and growing 15% more every year. The shoppers in China can't seem to get enough designer labels and premium goods despite high luxury taxes and piracy driving prices up. Shanghai has been particularly indulgent, as have some smaller towns like Shenyang and Harbin, although you might not know it by walking through the mall or visiting a boutique as many high-end shoppers prefer to have the merchandise brought to them from the store. It's not unusual for a single customer to spend upwards of $129,000 in a single sitting.

Although the market is so good that many retailers can't afford not to be there, the Chinese definitely have their favorites and not all brands are faring equally. Among the most successful are Louis Vuitton, Gucci, Calvin Klein, and Cartier.

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Tags: asia, asian markets, china, economy, luxury goods, luxury market, luxury spending china, spending

Tiffany & Co. Reports Soaring Profits

by Rigel Celeste (RSS feed) —

Filed under: Jewelry

According to Tiffany & Co. the luxury market is back on track as the brand reported more than quadruple profits in November, December, and January, with business growing in almost all areas and shares doubling over the last year. Sales were especially good in Europe (up 29%), in part thanks to the opening of new stores in Amsterdam and Heathrow Airport, plus the Far East returned good numbers and the company flagship in New York made a comeback of 22%.

There's still ground to be made up, however, as profit was still lower than expected (they planned on more than quadruple?) all while expenses and costs went up. But overall Tiffany is looking forward to a bright future, with company chairman and chief executive Michael Kowalski saying "We were very pleased with the sales results in the fourth quarter," and citing plans to continue expanding the global store base in 2010 and to remain both competitive and profitable.

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Tags: luxury market, LuxuryMarket, recession, tiffany and co, TiffanyAndCo

Drop in Demand for Luxury Cars Continues

by Rigel Celeste (RSS feed) —

Filed under: Luxury Cars & Autos

Do luxury markets really hold up better than others during an economic crunch? Many experts say no, and it would seem the steady decline in luxury auto sales is backing them up. Estimates say that automobile sales fell in March, which would mark the 5th straight month of decline and could result in the lowest numbers since 2005. Analysts speculate the drop in auto buyers has to do with several factors, including higher-end buyers holding onto their vehicles longer (waiting for the market to improve) and fewer entry-level lux auto owners being able to afford to buy right now due to increasing costs in other areas of their budget.

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Tags: auto, automobile, automobiles, autos, economy, luxury, luxury market, LuxuryMarket, money, shopping, spending, wheels

Newsflash: It's Expensive Being Rich

by Rigel Celeste (RSS feed) —

I can't believe I'm about to say this: Oh, those poor rich people.

But it's kinda true, if you're in a generous and sympathetic mood and willing to look at the numbers. The more money you have the more money you need, it's as simple as that. The luxury market and the prices of luxury goods is rising at about 3 times that of the standard market and of standard goods. Part of the reason for this is the fact that although there's more and more money floating around in the world there is still a finite amount of goods to be purchased with that money, and for people with money to spend status symbols become almost exclusively defined by their price: the higher the better.

It's a LOT more complicated than that, but it really can all be summed up in the simple phrase "it's expensive being rich!"

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Tags: expensive, luxury, luxury market, LuxuryMarket, money, rich, spend, spending, taxes, wealthy

"Young Affluents" Are The Future Of The Luxury Market

by Rigel Celeste (RSS feed) —

All industries must grow and evolve with the times, and the luxury market is no different. Used to catering to the "Baby Boomers," the luxury market is slowly (but surely) feeling a shift towards the younger generations, or the "Young Affluents." Referring to those age 40 years old and younger, the "Young Affluents" group includes Generation X and the Millennial generation, and they both have much different spending habits than their parents and grandparents.

Even though some adjustments will need to be made regarding different tastes and attitudes, the industry is hardly upset by this developing trend. With a "want-it-all" attitude the Young Affluents spent an average of 32% more than the Baby Boomers last year, and there is no sign they plan on slowing down.

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Tags: baby boomer, baby boomers, BabyBoomer, BabyBoomers, generation, generation x, generations, GenerationX, luxury, luxury market, LuxuryMarket, millennial, young affluents, YoungAffluents