Luxury retail’s evolving landscape in USA March, 2013
Luxury retail’s evolving landscape in USA Worldwide luxury goods market was estimated at c.USD 960 Bn in 2012 of which personal luxury goods accounts for c.29%
Personal luxury goods market grew at an average rate of c.5.5% over 19952010; however, the market has grown at almost double that rate since then
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Men’s indulgence in personal luxury goods has increased over the years
Europe is the largest region….
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…however, US is the largest market for personal luxury goods;
3 times larger than the second largest market Japan
These 11 countries account for c.83% of personal luxury goods market
US is the largest market for personal luxury goods. However, ‘luxury’ has taken a new meaning after the recent global economic downturn. Apart from uniqueness, rarity, and superiority, the ‘new age consumer’ is also looking for value-for-money from a luxury product. As consumer segments in personal luxury goods industry is expanding, companies in this industry could have rare products for the super affluent, but they may also want to have products to target affluent masses, the ones who are likely to purchase fewer things but can help them achieve sustainable growth.
“…The vast majority of people also said they would rather have fewer higher-quality things than more lower-quality ones. They want to feel like they are buying quality even if they are more price-conscious about it.” - Manila Austin, Director of Research, Communispace Corporation (result of a survey done on 1,200
US consumers)
“Never has there been a time in American history when there has been such a wildly diverse range of wealth. We are aware of seniors, Boomers, and most recently the newest class of Millennials, who are children of entrepreneurs, and have never known privation. It is an exciting time to redefine what luxury means, and how luxury can be sold to each age and income range.” - Dr. Jim Taylor, Vice Chairman, Harrison Group
Source: All data from secondary sources; Sutherland analysis
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