PARIS — Antoine Colonna, luxury analyst at Merrill Lynch in Paris, has been fascinated with Japan since he started following the luxury goods sector 10 years ago. After all, the market is vital to the success of any luxury brand and the country remains a consumer paradise (even if its economy has been depressed for more than a decade.)

But the Japanese market for luxury goods is changing rapidly — and not for the better, as Colonna outlines in a comprehensive new report. WWD sat down with him to talk about his findings:

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