Worldwide sales of luxury goods continue to increase according to the latest report by global property advisor CBRE, Luxury Retail 2015. 70% of all Chinese-led luxury purchases are now transacted overseas, resulting in sales increases in Western Europe (13.4%), Eastern Europe (18%), Africa (26%) and North America (5%) over the last two years.
Andrew Phipps, head of research and consulting, EMEA, CBRE, said: “Chinese purchasers account for 30% of the luxury spend worldwide and 70% of these purchases take place overseas, showing that the downward shift in their economy has prompted Asian consumers to rethink their purchasing habits.
“The advent of the new 'anti-extravagance legislation' in China and their consumers‘ growing awareness of price differentials of up to 70% has led to many preferring to make their purchases overseas, where the prices are far more attractive."
Chinese consumers are responsible for over 30% of global luxury purchases, the shift in their shopping habits is providing opportunities for luxury brands to grow their presence in Europe and America, as they become the main hubs for luxury expansion over the next five years.
The top European target markets for luxury brand expansion in 2015 was Germany with 46% of luxury brands establishing a new, or increasing their current presence in the country. France and the United Kingdom were close behind with expansion at 38% and 31% respectively.
To find out more, download CBRE's Luxury Retail 2015 here.
