A bleak outlook for luxury goods in 2009
Nicolas Boulanger, department manager for Eurostaf, believes that the devolpment of the luxury market in 2009 must be at a constant level between zero and 5%, a decrease of 8 points compared to 2003 – an historically tough year for the sector.
This decline occurred after an organic increase of 10% per year between 2004 and 2007, while in 2008 the increase is estimated to be between 3% and 5%.
“The increased demand for luxury items in emerging economies will not compensate for the decline in Western markets,” a specialist asserted. “As much as anyone the tourism industry has been affected by the economic crisis; shoppers are now passing by shopping opportunities in ‘duty-free’”.
This turbulence has forced large brand-names to reposition themselves with up-market offers, designed to target a more a fortunate clientele deemed “more stable”. This is an opportunity for French sub-contractors, according to Nicolas Boulanger, to pick up more work.
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