We live in a global world and luxury buyers tend to travel and also live abroad. Hence, luxury consumption happens quite often abroad because even tourists like to buy luxury goods from their visiting locations. In many countries, you can Louis Vuitton's products but for some reason, they feel extra special when you buy them in foreign countries. "I bought these shoes from Galeries Lafayette in Paris."
As we know that the largest luxury goods markets were in 2015 the United States 78.6 billion euros, Japan 20.1, China 17.9, Italy 17.3, France 17.1, the United Kingdom 15.6, Germany 11.9, South Korea 10.8, Middle East 8.1, Hong Kong 6.8 and Russia 3.2. These are already old numbers but new statistics are on their way but changes are not radical. These sort of figures might give you the assumption that Americans are the largest buyer group.
This is the reason why people should always look beyond the numbers because largest consumer groups by nationality are Chinese 32 %, Americans 22 %, Europeans 18 %, other Asians 11 %, Japanese 10 % and rest of the World with 7 %. Chinese, Americans, Europeans and Japanese have a market share of 82 per cent of the whole luxury market. Chinese are world leaders when it comes to consuming luxury products and this the reason why many analysts have said the luxury industry is depended on the Chinese. One-third of the global market share is tremendous but there is a demand for luxury products and services around the world, which will balance the whole situation in the future.
Published in Luxury Sales Academy.