12/12/2014
London - Luxury goods retailing in Europe is forecast to reach €120bn by 2018; forecasts report that the UK is set to overtake France and Italy to become the leading luxury shopping market in Europe by 2018. Highlighted is Graff Diamonds, synonymous with the most fabulous jewels in the world.
Highlights:
• The European luxury goods retail market will grow to €120bn by 2018, an increase of €30bn between 2013 -2018
• The top 6 luxury markets in 2013 were Italy, France, UK, Germany, Russia and Spain, but the UK is set to take the top spot by 2018 with a 19.6% share
• Clothing, jewellery & watches, and drinks are the largest luxury categories in consumer expenditure in Europe – accounting for 24%, 18% and 15% shares respectively (2013)
The UK is a major attraction for luxury consumers and high net worth individuals. Its strengthening economy along with its ease of doing business is attracting high spending luxury consumers to not just visit, but also live and work in the UK. Furthermore the development of luxury shopping destinations in Central London, plus iconic department stores and hotels, are attracting more luxury tourists and increasing spend. On the other hand, while Italy and France are the home of some of the leading global luxury brands, both countries are suffering from poorly performing economies, restricting the spending of resident consumers.
Apart from being a major tourist destination due to its heritage, the UK has a large financial centre that attracts individuals from all over the world to live and work in London and attracts many wealthy individuals from less stable economies such as Greece and Russia as a safe place to invest in property and other. Moreover, it is on the agenda of global luxury travellers for major social season events such as Ascot, Wimbledon and Henley, and has been a destination for residents of oil rich countries for many years .
Over recent years London’s status as a global luxury destination has increased as more and more luxury brands have opened flagship stores, and property companies and developers have transformed areas such as Bond Street and Regent Street making them far more attractive to global brands. Next to this, other areas of London have also boosted their luxury status. Knightsbridge and Sloane Street house many international brands’ stores and more recently Mayfair’s Mount Street and surrounding area has become a destination for brands such as Balenciaga, Marc Jacobs, Oscar de la Renta and Celine to open more discreet stores catering for very rich clientele who often live locally or are staying at prestigious. In addition, London has Harrods and Selfridges, two of the best known department stores in the world for shoppers of luxury items.