Men's Clothing Returns To Luxury Market And A Decent Recovery

The amazing performance of luxury brand accessories, the return of men's clothing, the revival of the global market, and the strong holiday spending in 2010, have pushed the luxury industry to another peak since the 2007 record before the global economic crisis. According to the updated report of Bain and Fondazione Altagamma2011, 2010 has become a peak of luxury consumption, with a gain of 12% or 172 billion euros ($227 billion). In the first few months of 2011, brands have begun to enjoy double sales, including retail outlets and wholesale agents. The Chinese market is expected to grow by 25% this year. Sales in the US market are expected to reach 8% by the active business strategy of the major department stores.

The study reflects the positive performance of luxury goods groups in the first quarter, as well as frequent takeover and acquisition activities, such as LVMH's acquisition of Bulgari for $6 billion. "The good momentum of the luxury goods industry brings more financial resources." Claudia D'Arpizio, partner of Bain company, said. "All brands must invest more emerging markets from existing markets, and invest in retail experience and products to attract new customers and maintain existing customer resources. Large groups will invest more brands. "

According to Bain estimates, the performance of other Asian countries and regions will increase by 15% in 2011 and 7% in Europe. Japan's sales fell by 5%, but analysts believe that their sales in the third quarter could balance the previous losses. This trend has become an important basis for the expected increase in sales between 2011 and 2014 in the four years, bringing in sales of 2140~2210 billion euros, equivalent to 3173~3277 billion (converted at constant exchange rate). 5%~6%

Europe and the United States showed strong retail sales in the first quarter of 2011, along with the increase in orders in the 2011 autumn and winter and the pick-up in demand for holiday replenishment. Japan has been in a depressed state after the March 11th earthquake, tsunami and nuclear leakage. But with the GDP growth brought about by the reconstruction, the Japanese market is expected to recover at the end of the year. China is expected to show sustained growth, and brands are increasing the number of direct outlets in China, including Russia, the Middle East and Brazil.

The United States remains the largest luxury market in 2010, creating sales of up to 48 billion euros ($63 billion 310 million), followed by Japan's 18 billion euros (23 billion 740 million dollars) and China's 17 billion 600 million euros (23 billion 210 million US dollars). The number and scale of emerging markets have improved significantly. Brazil also created 1 billion 800 million euro (US $2 billion 370 million) sales in 2010, and the annual comprehensive growth rate is expected to reach 10%~15%. Sales in the Russian market reached 4 billion 800 million euros ($6 billion 330 million), and its composite annual growth rate in the next three years is expected to reach 5%~10%. Sales in the Middle East amounted to 4 billion 100 million euros ($5 billion 410 million), including Dubai, ABI Dhabi, Doha and Kuwait. The compound annual growth rate in the region should be able to increase 10%~12%. India is also expected to gain 5%~10% sales growth. In 2010, the country's luxury market share reached 800 million euros ($1 billion 50 million). The study points out that mainland China is still the fastest growing region of sales and will become the third luxury market in the world within five years. Sales in mainland China increased by 30% in 2010 to 9 billion 200 million euros ($12 billion 100 million), and the growth rate in 2011 was expected to increase by 25%. Second tier and three tier cities will become the new [16.34 -2.51% shares of luxury brands in mainland China, but sales will also be driven by organic growth. Consumers are more and more professional and mature, and have high loyalty and more detailed requirements for products, which will inevitably lead to a sharp decline in imitation sales. In store shopping experience and after-sales service will become another key factor of success.

"China's luxury consumers spend a lot of time planning to buy, and search for the most comprehensive information on the Internet." D'Arpizio said. "Their awareness of brand is constantly improving, and they take the information they know to the shops. Luxury shops have raised the threshold of China's consumption, a better consumer experience, a more professional salesman and a more full choice. " With the younger generation of luxury consumers, investment in digital marketing has also increased significantly.