According to the report analysis, ‘Luxury Goods Retailing In The Americas, 2017-2022: Market & Category Expenditure And Forecasts, Trends And Competitive Analysis’ suggests that the luxury goods retailing in the Americas is observing consistent growth, supported by a favorable economic scenario and rising tourism. The US is the undisputed leader of the luxury market in the region, accounting for 92.1% market share however, growth is driven by emerging markets such as Canada, Peru, Columbia, and Mexico. The growing influence of social media has created awareness about brands while the improved purchasing power in these economies makes them attractive destinations for international luxury markets. In addition, there are some key players who are working efficiently in this and lead the market growth of luxury goods retailing in the America which includes LVMH Ralph Lauren Corporation, Michael Kors Holdings Ltd., Kering S.A., Compagnie Financiere, Richemont SA, Burberry Group PLC, Tiffany & Co., Hemes International, S.A. pradaS.p.A.,TodsS.p.A. and others.
The rise in disposable income represents the significant growth in the retailing of luxury goods in the coming years. Luxury goods are the synonyms of superior goods and Veblen goods. Basically, luxurious goods are those goods which are having a significant brand name and can only be purchased by the wealthier person or those who is having high income elasticity of demand. Not everyone can buy luxurious goods. Whereas, income elasticity of demand is not constant with respect to income, it may change sign at different levels of income. Not only has this, in the modern era not only goods not luxurious but the services may also be luxuries. Moreover, new innovations in the goods which made a good luxurious are drive the retail market and increase the demand of that product as luxurious good is always defines a status of a person.
The luxury goods retailing has split in the market on the basis of demand and usage of the goods which includes clothing, consumer electronics, drinks, footwear, furniture, home wares, jewelry, watches and accessories, luggage and leather goods, personal care, communication equipment, stationary, tobacco, travel, tourism and other. However, clothing is the largest product category in luxury sales in the Americas. In addition, Latin American Economies and Canada are driving growth in the luxury market. Furthermore, it is also expected that communications equipment is projected to grow the fastest during 2017-2022. However unsurprisingly, the growth of luxury good retailing is consolidated by the key player whereas LVMH, Richemont and Kering are the major key players which are dominating the huge market share in areas ranging from luxury drinks to fashion and cosmetics.
The existence of both local and global market players diversify the market base and this presents more unseen challenges and new opportunities to key players in this industry. Development in the economy and vast change in the lifestyle with the increase in income, the luxury goods retailing is growing significantly. Additionally, with the developments in the recent trends the person will able to buy assured luxury goods while sitting at home on a reasonable price which result significant growth to the luxury goods retailing in the coming years over the decades.
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Ankur Gupta, Head Marketing & Communications