Sales of luxury products will have a sluggish growth in
2009, and will revive by the end of 2010. Industry analysts also predict that
sales in the segment will further increase by 4% by 2011, and ultimately
recover completely in 2012. Companies need to adopt new strategies, and opt for
cost cutting tactics, and attempt to develop a premium shopping experience.
Luxury market is also affected by changes in the ethics of
the consumer. Highly competitive, luxury market is packed with consumers who
are getting less loyal and more demanding with regards to their brands. Along with
the growth of the luxury market, counterfeit items also continue to peddle in the
market; worldwide, in an alarming ratio.
Brands that follow approaches to minimize overhead expenses
and invest in developing brand loyal among their customers, and create a unique
shopping experience for them will be able to reposition themselves in the
market and see a strong growth in the years to come.
Despite the slump in revenues in the recent past, luxury
market is booming again. Increase in the number of worldwide millionaires, and
mass consumers dipping into luxury have boosted up the confidence in economy,
predicting a bright future for luxury fashion houses.
References:
- http://www.cosmeticsdesign.com
- http://www.plushasia.com
- http://www.researchandmarkets.com
- http://www.forbes.com
