Domestic demand for luxury in Russia is recovering. 62% of wealthy citizens said they increased the cost of luxury goods in the last year. The same trend can be seen in China and the UAE.
According to a Deloitte survey, covering 11 countries, 62% of buyers in Russia, China and the United Arab Emirates, countries that Deloitte refers to the developing markets of expensive goods, said about the growth of their spending on luxury goods in the last 12 months. In developed markets (in the European Union, the United States and Japan), the share of increased spending on luxury is much less – 49%.
The study involved 1,300 respondents who consider themselves wealthier than their country’s citizens on average and who have made at least one purchase of luxury goods in categories such as clothes and shoes, bags and accessories, cosmetics and perfumes, jewelry and watches for the past six months.
“Consumers in emerging markets continue to stimulate the growth of the luxury market,” Deloitte analysts conclude.
The Russian luxury goods market, which resumed its growth in 2016, continues to grow, also because of increase in the tourist flow, including from China. In addition, the Russian market of premium products was positively affected by the fact that retail companies held back or even cut prices. In 2016 the ruble strengthened, and the companies reduced the prices for luxury goods by more than 11% in Russia.
If in 2015 the Russian luxury goods market showed a decline for the first time in five years (by 9%, to 227.2 billion rubles), then in 2016 it resumed growth – it amounted to 1%, to 229.6 billion rubles.