There is a factor with on-line shopping playing a key part, to support traditional purchasing. Technology is driving the market in many ways with tablets and phones, to give more accessible variety. The rate of increase in Chinese spending on luxury goods has slowed at present, affecting brands like Burberry, Armani and Dior, Burberry saw sales increase in 2012 by 20 per cent compared with 30 per cent in 2010, also Chinese shoppers do go to Paris and Berlin more than London, because of Visa restrictions.
Wait and see as by 2017 China’s luxury market is set to double in value again, and will overtake Britain, France and Japan, making China second to the USA.
Organisations for example like Walpole Luxury Brands, are a showcase for British brands, from well-known ones to small niche ones, great opportunities for British entrepreneurs. Most brands start small such as Jimmy Choo and Jo Malone have been worldwide success stories.
Another growing retail feature in Britain and Europe is designer luxury villages, one in Hackney London, called Victoria Park Village, where you can purchase Burberry and Pringle wih more outlets to follow. From Hackney to the fashionable Burlington Arcade in Piccadilly, dating back to 1818, was the first luxury covered area, with brands now of Jimmy Choo and N. Peal luxury cashmere. Fortnum and Mason are over the road from the Burlington Arcade, has the Royal approval, it is a luxury store famous for its hampers and biscuits dating back to the 1700s, which is now a popular tourist attraction.
We are also seeing luxury brands moving across markets, what we call brand stretching. You can see examples of brand stretching from Armani, Bulgari and Versace Armani in Milan, Burj Khalifa in Dubai the world’s tallest building to London in the near future. Bulgari in Bali, Milan and fashionable Knightsbridge, Versace in Western Australia. They are maintaining their client base and attracting new clients to their brands.
Dana Thomas the author of the worlds best selling book based in America, says: Luxury as we know it today is rooted in old Europe. Royal Courts of France, luxury does come from the home of France and also Italy.
Charles Dickens quote
Look where I will . . . I see Fortnum and Mason Hampers fly wide open and the Green Downs burst into a blossom of lobster salad.
There is great opportunities for graduates in the market of luxury worldwide from finance, marketing and international business.
James Knight is guest speaker at Judge Business School Cambridge on post graduate on luxury globally and at other universities and in Las Vegas, with many published articles worldwide.
