June 5, 2013

Europe Holds The Most Lucrative Luxury Market On A Global Scale

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In latest years, Asia has rapidly picked up the pace, transforming from newcomer into an important pawn on the global luxury market. However, according to a study conducted by global management firm Bain & Co, Europe is the number one continent when it comes both to production, as well as sales of luxury goods.

The report published by Bain & Co shows that in 2012, the European space accounted for 35% of sales on the luxury market, followed by the Unites States with 31% and the Asia-Pacific region with 20%. A good deal (one third) of luxury market sales on the European market are accounted for by Asian tourists, especially Chinese ones, who prefer to shop in Europe rather than their native country, due to the lower taxes.

The optimistic numbers when it comes to luxury market sales has prompted the expansion of a couple of American-based luxury brands, such as Coach or Michael Kors, onto the Eureopean market. Moreover, the same study by Bain & Co, shows that 70% of luxury goods on a global level, are being produced in Europe. Louis Vuitton, Gucci, Burberry and Hermès are amongst market leaders when it comes to manufacturing luxury goods.

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