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.”
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia