Sandalwood Research Blog
Luxury goods in China expected to grow 6-8%
A recent Bain Consulting study notes that global luxury is expected to grow by 2-4% in 2017, continuing a trend started in 2016. Interestingly, the study notes that luxury sales in mainland China are expected to rise 6-8% this year, due to a trend of Chinese consumers buying more luxury goods at home.
While our research team has been alerting investors to the return of Chinese spending on luxury goods as early as mid-2016, we were curious to see if our data showed a consistent trend of Chinese consumers purchasing more luxury goods at home. Our research based on purchasing data from over 750 million Chinese consumers revealed similar trends to the Bain study.
We present below the relative strength of Kering sales among Chinese consumers, broken out by Mainland China vs. Europe. While both geographies are seeing strong growth over the last twelve months, y/y growth in Mainland China is outpacing Europe in every month:
Sandalwood’s research team observed similar trends at Hermes, though interestingly enough, our research indicates that Europe is still strong among Chinese consumers of LVMH’s brands, where y/y growth between mainland China and Europe is more equal. Overall, our data continues to show positive y/y comps among luxury names such as Kering, LVMH, Hermes, Swatch, Richemont, Prada, Moncler, etc, regardless of geography.
Sandalwood Advisors is Asia’s first alternative data platform. For more information regarding the specific performance of individual brands by geography, please contact us here!
Yes, in a big way, according to this recent article on Consultancy.uk. Since their data stops at 2015, Sandalwood’s research […]