SINGAPORE: The Asian luxury market is showing no signs of slowing, with top-end cars continuing to see growth, strong jewellery sales and a prediction that the region will be world's biggest within five years.
A new report from market researchers Euromonitor International – Passport: Luxury Goods – forecast that over the 2013-18 period, the luxury market in India would grow by 86%, in constant value terms, and that in China by 72%.
Fflur Roberts, the head of luxury goods research at Euromonitor, told Business of Fashion that on current trends Asia Pacific would be the biggest region in the world for luxury goods by 2018.
"This is predominantly due to China, but also the emerging Asian markets like Malaysia and Indonesia," she said. "India is also a major contributor," she added.
Recent auctions at Sotheby's in Hong Kong illustrated the willingness of the super-rich to spend heavily on jewellery and art. The New York Times reported that a white diamond the size of a plum sold for $30.8m, including fees, while a painting by Chinese artist Zeng Fanzhi fetched $23.2m.
Carmakers have also remarked on the strength of the region, although China is no longer the driver of growth it once was. Lamborghini and Rolls-Royce, for example, have both noted a resurgence in Japan.
And Torsten Mueller-Oetvoes, Rolls-Royce CEO, pointed to other hotspots, including the Philippines, Thailand and Vietnam. The marque has just opened its first showroom in Manila "because we see quite good potential in this market, particularly when you look at the projections of ultra-high net worth individuals" he told Reuters.
He added that brands such as his were not in competition with other top-end cars. "Our breed of customers, if they like both cars, they would buy both cars," he explained. "It is a competition which is more: may I go for art, may I go for jewellery or a precious watch or a chalet in the Swiss Alps."
Data sourced from Reuters, Business of Fashion, New York Times; additional content by Warc staff