Luxury goods saw a significant current value decline in 2020, due to limited mobility, store closures or limited operations, the closure of borders, and consumers’ reluctance to spend during COVID-19. In 2021, although there was less disruption to store-based retailing, and sales of luxury goods returned to growth, the prolonged impact of COVID-19 continued to impact the industry and sales did not return to anywhere near the pre-pandemic level.
One of the most evident trends in 2022 has been sustainability, as the importance of this topic has risen amongst consumers. The Japanese government is promoting SDGs (Sustainable Development Goals), and it has set the goal of becoming a carbon-neutral society by 2050.
Whilst manufacturers of premium and luxury cars hold four of the top five positions in luxury goods, because of the high unit prices commanded by their products, these brands tend to focus almost exclusively on their core category. Excluding premium and luxury cars, Louis Vuitton Japan is the largest player in luxury goods in the Japanese market, with its portfolio containing a number of high-profile brands, such as Louis Vuitton and Fendi, and spanning several product categories, including designer apparel and footwear, luxury leather goods and luxury writing instruments and stationery.
The shift online in luxury goods was more limited than in other industries in Japan, due to the nature and high prices of luxury goods, which consumers prefer to see in person, try on if appropriate, and be sure that they are receiving genuine products. Nevertheless, a shift to e-commerce was seen throughout the pandemic for luxury goods in Japan, and this is set to continue in 2022.
Overall luxury goods is set to see solid current value growth throughout the forecast period, returning to the pre-pandemic level of sales in 2025/2026, although important differences will be seen in the rate of recovery between categories. An important factor for the revitalisation of the industry will be the recovery of demand from inbound tourists, which was lost after 2020, when COVID-19 emerged and the borders were closed.
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Understand the latest market trends and future growth opportunities for the Luxury Goods industry in Japan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
If you're in the Luxury Goods industry in Japan, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.See All of Our Definitions
This report originates from Passport, our Luxury Goods research and analysis database.
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