The global market for personal luxury goods continues to grow, reaching € 224 billion as per the annual research report by Ernst and Young in 2014. The report titled, ‘The Luxury and Cosmetics Financial Factbook 2015’ stated that the market grew by 3% in the period. Luxury goods are commonly characterized by their premium quality, craftsmanship and reputation and are goods that give pleasure and comfort. The online sales now make 5% of total luxury goods sales. Meanwhile, global cosmetics sale grew by 3.6% as compared to the previous year reaching € 181 billion in 2014.
The report analyses personal luxury goods market by value over the years, touristic consumption, and price comparison of different brands, for each region. According to the report, the global personal luxury market has entered a period of maturity with demand still growing sustained mainly by tourist consumption. China continues to be a top consumer while Japan and Korea are hot new destinations for the key market players such as LVMH, Hermes International and Kering Group among others.
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The growth has been backed by the sharp depreciation of the Euro with unbalanced price structures across regions. Increased use of social media increased omni-channels, globalization and development of second-hand or pre-owned luxury goods market whereas key challenges faced by the companies are currency fluctuating, the need to develop flawless omni-channel and the redefinition of retail landscapes.
