Number of luxury consumers increase to 350 million

DAILY SABAH
ISTANBUL
Published 28.06.2015 22:05
Updated 28.06.2015 22:08
Number of luxury consumers increase to 350 million

The Luxury Goods Worldwide Market Study Spring report, which was conducted by Bain & Company, one of the leading consulting companies in the global luxurious goods industry, revealed that the overall number of luxury consumers has increased from 140 million worldwide to more than 350 million. The luxury goods industry accounted for 224 billion euros in revenue in 2014, which is up by 3 percent compared to 2013.

More than 50 percent of all luxury spending in the luxury goods market, which has earned more than 3 billion euros in retail transactions in the last 20 years, was made by consumers who shop outside their countries. A total of 30 percent of all global luxury spending is being made by Chinese consumers. According to the report, luxurious footwear has the best sales performance among all luxurious goods. It is also reported that there has been a revival in jewelry sales; however, it is still slow considering previous years.

As the report indicated, exchange rate fluctuation in 2014 especially impacted Chinese consumer's touristic activities as well as their consumption habits. While Southern Europe continued on a path to recovery as they suffer from fluctuation, Western Europe was supported by Asian tourists. The U.S, which lost a great deal of its tourism-based income, was unable to reach the expected revenue in the luxurious goods market in the first quarter of 2015.

Serhat Nadir, the partner of Bain & Company's Turkey, office said the luxurious goods market in Turkey has been on the rise in parallel to the growth of the global market. Nadir also reviews the luxurious goods industry in Turkey and shared his prediction that apart from consumers from the middle- and upper-middle classes, global consumers coming to Turkey for touristic purposes will help the country's luxury market grow in 2015. He stressed that the luxury market in Turkey will grow slowly considering global market growth; however, Turkey's luxurious goods market will build up steady and strong. "Women's accessories are very important elements in the market. In particular, ladies' accessories will contribute more than 15 percent to the market growth in Turkey," Nadir said.

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