Emerging Markets for Luxury in 2020

Despite trade tensions and political turmoil, the market for personal luxury goods grew by 4 percent to reach 281 billion euros in 2019. The growth came mostly from Asia. But as the new decade dawns, what are the market dynamics to keep an eye on? Mainland China: Getting Domestic Although the economic juggernaut of China has slowed, personal luxury purchases have not: They grew around 26 percent in 2019, according to consultancy Bain & Company. Within five years, Chinese consumers could be responsible for almost half of all luxury purchases, the analysts said. Thanks to previous Chinese government tariffs, a lot of those purchases — an estimated 70 percent — were made while traveling, because locals could get their handbags and shoes for, on average, about a 25 percent less outside the country. More recently though, the Chinese government has wanted to encourage consumption inside the country. A change in policies, alongside price harmonization by luxury brands, means price variations are no longer so big. Also an issue: Anti-government protests in Hong Kong are keeping travelers at home. Additionally surveys have suggested that younger Chinese travelers are focusing less on shopping and more on touristic experiences. By 2025, experts at Bain suggest Chinese shoppers will be

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