Lately, i was pondering how much money a couple of my "Branded" friends are spending for their branded luxury goods. It seems like almost anything they used or wear must be branded. Perharps, it is their monthly salary and family $ net worth that allows them to spend it that way.
There is another clear reason for it: The Growing Market of ASIA.
Based on a recent report in HongKong, Asia is now the world's largest market for luxury goods, accounting about 37% of this US$80 Billion sector. Luxury giants are shifting their focus from Paris and London to the malls of Asia to take advantage of booming demand. Behind the spending spree ia an Asian Culture of conformaity as well as a simple need to show off success in this part of the world. Many take this as the time to show off wealth and success to the world.
The Asian mania for luxury goods started in Japan in 1980s as the country's economy took off. The success was then repeated in our Asia countries such as HongKong, Taiwan, Singapore, and despite a little nationalists resistance, South Korea.
Now China will be the main focus of almost all luxury brands, as the country's massive economic growth and the SHOW-OFF culture of Chinese will create a perfect market. Luxury brand managers are also looking closely at India and Vietnam as their next target market.