Luxury spending might be subject to the occasional quarterly blip, but it’s here to stay.
“I am optimistic, if there are no asteroid impacts or nuclear wars, the luxury goods market will continue to grow over the next 30 to 50 years.”
So says Armando Branchini, deputy chairman of Milan consultancy InterCorporate, and vice chairman of luxury goods association Fondazione Altagamma.
Branchini estimates the compound average growth ratio in personal luxury goods could range between 6 and 9 percent in the next three to five decades based on expected economic and social growth in industrialized countries, as well as in emerging markets.
Asked what areas show the most growth potential after China, he pointed to—surprise—North America, which registered around 6 percent growth in 2012 and is expected to show the same this year. This area accounts for around 26 to 28 percent of the total luxury goods business, and represents more than the 12 percent growth from China, which still accounts for around 8 percent of the total. He also pointed to South Africa as having strong prospects.
Countries with no visa requirement or customs duties, like Singapore, Malaysia, Indonesia, the Philippines and Thailand, plus Cambodia and Vietnam further down the line, are markets with potential. While India now accounts for less than 1 percent of total spending because of high customs taxes, sooner or later it will have to open to free and fair trading, he added.
Branchini also pointed to inner China, as now business is more developed on the coasts, and to the Mercosur area: Brazil, Argentina, Uruguay, Paraguay and Venezuela.
“The growth in the luxury goods sector is unstoppable. There may be a global economic crisis and macro structural factors, but there is no crisis at the consumer spending model,” he concluded. “If you try superior quality, you never go back.”
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)