Retailers, consumers and prices
Check out the cautious notes being sounded in the global luxury market.
Industry executives voiced concerns about everything from unemployment to Europe’s brewing economic crisis, but are nonetheless banking on growth from China and a recovering U.S. market.
Leading officials speaking at the Reuters Global Luxury Summit said the debt crisis in Europe is threatening to halt luxury’s rebound, but demand for fine merchandise was picking up in the United States while China’s shoppers were venturing frequently into Tokyo for top brands.
“The euro zone is a sizable market, but today the growth reserve is in the emerging countries, and particularly in China, whose demand is pulling the entire sector,” said Isabelle Ardon, head of Paris-based SG Gestion’s luxury fund.
The debt crisis and depreciation of the euro have raised concerns of a double dip global recession that could knock luxury spending back down after a fragile recovery. Bulgari’s CEO Francesco Trapani (pictured) said Europe would remain a difficult market.
Check out what executives at luxury retailers around the world are saying about consumer demand.
Early feedback from the Reuters Global Luxury Summit, which gathered top executives from Asia, Europe and the United States, sounds positive. Some executives even predicted that the sector will rebound this year after suffering during the weak economy.
Chief executives from Burberry Group, Hermes, Tiffany, Rolls-Royce and Richmont’s Van Cleef & Arpels are among the many officials who will speak this week at Reuters’ first-ever Global Luxury Summit about what their sector is facing amid a recession that has even well-heeled consumers dialing back spending.
In a new report, Bain & Co predicts sales of luxury goods are expected to drop 10 percent this year and not recover fully until 2012.