The continent of Asia is expected to take over 50 to 60 percent of the luxury market, including luxury apparel brands in the next ten years, as Asian household incomes grow and local economies expand, according to Economist Intelligence Unit (EIU).
The continent accounts for around two-thirds of the luxury brand market and has seen a slowdown in its luxury goods sales in recent years.
A recent study conducted by EIU, ‘Rich pickings: the outlook for luxury goods in Asia’ forecasts that the region will rebound to account for more than half of the luxury goods market within a decade, driven by rapid growth in household incomes, reports The Telegraph.
The study indicates the strongest growth would be in China, as the country is estimated to have nearly 13 million households with a disposable income of US$ 150,000 or more by 2030.
India is expected to have more than 30 million households with estimated annual incomes exceeding US$ 50,000 by the same time.
The study forecasts that India would become a “key battleground for luxury brands as the retail markets would open up for foreign investments.”
Malaysia and Thailand are expected to be major shopping destinations with the former benefitting from low import duties on luxury goods.
However, the study indicated that not all countries would be contributing to the growth, especially Japan, as the country is suffering from a weak currency and fragile consumer confidence, which will hamper its potential.