Luxury Market Weakening In Japan

Japan, one of the “last frontiers” of great luxury, has many designer brands worried, according to a report on WWD.com.  Between the weakened yen and the growing interest in other ways to spend discretionary income — like home decor and travel, for example — many luxury brands, like Chanel and Louis Vuitton, are worried about “contained” growth rather than anticipating rapid growth, as in year’s past.

“Japanese consumers purchase between 30 percent to 45 percent of all luxury goods worldwide,” estimates Antoine Belge, luxury analyst at HSBC in Paris.  Since many consumers were probably going into debt to acquire their luxuries, they now have a strong incentive to cut back.  It has many labels worried — but they’re not completely out of the game.

So how do you compete in a competitive marketplace?  With exceptional service and unique offerings.  And with 127 million potential consumers in Japan, many luxury retailers are willing to “step up to the plate” to provide it, to keep those registers ringing.

Just thought you’d like to know —


Be Sociable, Share!

Comments are closed.