Global Luxury Goods Market – Is This Year’s Sales Numbers Foreshadowing A Scary Fall For The Luxury Goods Sector?
This year, according to the same research, the global luxury goods sector is heading for a spectacular collapse of up to 20%. This means that if the predictions are true and the market is in fact seeing a big crash then by the end of this year, as predicted, the global luxury goods sector will be back on its knees, in terms of market share, income and revenue. This is bad news for Italy and Spain, the two biggest core economies in the Europe. The same study also says that Italy’s market share will shrink by six percentage points to thirty percent while Spain will fall by seven percentage points to twenty percent. These are not big percentages compared to the economies of the United States and Japan, which are believed to be the largest global exporters of luxury goods.
. However, the good news for Italian and Spanish businesses is not all bad news for their home markets either. With the slowing down in global markets and the potential for government bailouts to keep these countries afloat, they may be able to ride out the storm and weather the storm in the luxury goods market. This may allow both Italian and Spanish companies to pull through and bounce back from the worst hit countries.
For now, Italy’s chief economic advisor has warned that the country will not be able to avoid the next outbreak of the deadly virus, nor can it manage to protect itself against future outbreaks. “If it were possible, we would not be facing such a problem. Unfortunately it is not possible,” Pier Luigi Bersani told the Corriere Della Grazie. “In any case, there is no need to panic. We are fully prepared for outbreaks, and this should help us to stop worrying too much about the economic crisis and how it is impacting the way people perceive the economy.”
This means that the current recession will be temporary and could be overcome over time, possibly sooner than many people think. It also means that there is a very real opportunity out there for those companies that are either re-positioning themselves or building a stronger foundation for the future. The next outbreak of the deadly virus will be inevitable, but that doesn’t mean it has to mean the end of the market for high-end brands. The answer could be that there is always another outbreak – it could be as inevitable as we are all getting older.
Italy’s economy is in recovery and they’ve actually done quite well in the last few years, growing at about 5% per year. However, they’ve suffered a significant recession the last five years, and consumer spending has dropped off. However, Italy’s property market is booming, so they’re still well above the rest of the European countries. The main investment sector remains the financial services sector, which is doing particularly well in the last few years, as banks and other financial institutions have been bailed out of their losses.
The study also said that despite the slowing down of Italian growth, the picture is still positive. Markets are “not ready” for the slowdown, but it does suggest that investors are looking at other markets such as Latin America and Asia, as potential growth engines this year. This year could be a good one for luxury brands, according to independent brand advisor Christopher Scott, CEO of Scott Global. Latin America is a region that has recently started to develop its economy and its consumers are “increasingly interested in owning branded items.”
The slow growth in Italy is said to be due to a number of factors, most notably the slowing down in consumer spending in response to high inflation and cutbacks in government spending. Other contributing factors are higher than expected demand in China due to the end of the Chinese economic downturn and higher than expected demand in the United States due to an improving job market. The slowdown in China may have a dampening effect on European demand for luxury items. However, the outlook for growth in India appears to be promising with disposable income growing at the fastest pace in almost a decade, the government is removing obstacles to investment and infrastructure development and increased availability of capital.