Asia Pacific is the most dynamic region for personal luxury, underpinned by huge demand in China, high value sales and consumer affluence in developed markets such as Japan, South Korea and Hong Kong, and rising levels of expenditure in fast-growing emerging markets such as India. Surging demand was largely unchecked until the outbreak of Coronavirus (COVID-19), but even with this derailment, growth prospects remain positive.
This report comes in PPT.
Asia Pacific leads personal luxury growth, as per capita spend on the category in the region remains much lower than Western counterparts. With the huge rise of wealth in emerging markets, luxury is now becoming a financial possibility for many consumers.
Japan is a relatively mature market with growth primarily driven by inbound tourism. The young generation of consumers represented by the "post-80s" and "post-90s" have become the main force of India’s and China’s personal luxury market, with the next leg of growth to come from lower tier cities.
but the onset of COVID-19 has severely damaged the prospect of recovery. The Hong Kong luxury market was hit hard in 2019 by the non-extradition protests between June–December. Tough security measures have suppressed political volatility,
Super premium beauty grew by a CAGR of 12% over 2014 -2019. Skincare is the largest category but color cosmetics was the fastest growing, spurred by rise of social media.
E-commerce adoption in personal luxury has hit an inflection point, as tech-savvy, digital-native shoppers reach the economic status of buying luxury goods.
Gucci has swiftly climbed brand rakings owing to digital transformation and its stylistic evolution focused on a younger demographic. LVMH, however, remains the regional leader, with impressive market share gains too.
The impact of COVID-19 on demand for personal luxury has been severe in 2020, but recovery is expected, despite the threat of recession. Industry players with intelligent digital strategies and higher exposure via online channels can be expected to navigate the situation more smoothly.
This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.
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