The behavior of young Chinese people is causing champagne corks to pop in the global luxury business: The demand for exclusive clothing, cosmetics and jewelry has risen strongly this year, the management consultancy Bain & Company and the Italian luxury goods association Fondazione Altagamma announced in Munich on Monday.
Sales in China are expected to increase by around 7 percent to around 280 billion euros for the year as a whole. The decisive factor here is the fashion-conscious younger generation in China, which is heavily influenced by social media. Sales of exclusive brands in the People's Republic are expected to increase by more than 20 percent this year.
“In the rest of Asia, the luxury business is also booming” with growth in sales of almost 10 percent and, here too, the spending by Chinese tourists is having a particularly positive effect. In South Korea, for example, “the Chinese in particular shop in luxury boutiques,” Bain said. In Japan, local social media influencers persuaded young Japanese people to indulge in luxury consumption.
In Europe, the strong euro is slowing down the propensity of foreign visitors to consume, including in Germany. In the UK, the shops selling luxury goods have been affected by the uncertainty surrounding Brexit. In Europe, Bain expects the sale of personal luxury goods to grow by 2 to 4 percent. According to Bain, the global sales of personal luxury goods increased by 5 percent to 262 billion euros last year.
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A single purchase
