Personal Luxury in Singapore

PROSPECTS

Economic growth boosts sales

Singapore has seen healthy GDP growth in 2018 with a low unemployment rate and growth in exports, which is a key component of the country’s economy. This has resulted in a sharp rise in the number of high net worth individuals in Singapore, with this coupled with improved consumer confidence among locals helping personal luxury to record stronger growth in 2018 in current value terms compared to the previous year.

Challenges hinder growth potential

Personal luxury is expected to face several challenges that may limit its growth potential. For example, the grey market remains a key concern for luxury leather goods and timepieces.

Concept of pop-up stores

The bulk of sales of personal luxury continue to stem from store-based retailing, including non-grocery specialists and mixed retailers. When it comes to luxury goods, consumers still prefer to visit brick-and-mortar stores to touch and feel a product before making a purchase.

COMPETITIVE LANDSCAPE

Fragmented competitive landscape for personal luxury in Singapore

Louis Vuitton Singapore was the leading player, overall, in personal luxury in 2017, supported by its good performance in luxury leather goods and luxury timepieces. Rolex Singapore, Richemont Luxury and Hermès Singapore followed closely behind thanks to their strong presence in Singapore and well-established brands.

Tapestry Inc aims to diversify and increase value shares

In 2018, GBO Tapestry Inc acquired Kate Spade’s operations in Singapore, in a bid to assume greater control over its international distribution. Following which, it has started to revamp its retail stores to enhance the customer shopping experience.

Gucci benefits from bringing eyewear back in house

Gucci Singapore Pte Ltd was one of the most dynamic players in 2017. This was largely due to the company bringing Gucci eyewear back in house in 2017 after Safilo’s license ended.

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