Global Monitoring Report: Luxury Footwear Growth Exceeds Leather

Worldwide Luxury Markets Monitor (global luxury market monitoring) report shows that in 2014, global luxury consumption will only grow by 5%, and it is expected to increase to 223 billion euros, or about 282 billion dollars, excluding exchange rate factors.

It's only 2%, the lowest since 2009.

According to the Bain & Company Bain consulting company and the Fondazione Altagamma Altagamma Italy luxury industry association jointly released the latest Worldwide Luxury Markets Monitor (global luxury market monitoring) report, in 2014, the global personal luxury consumption will only grow by 5%, and it is expected to increase to 223 billion euros, or about 282 billion dollars, excluding the exchange rate factor, the growth rate is only 2%, the lowest since 2009.

In 2013, the consumption of luxury goods increased by 7% over the past year, and the rate of increase was 3% after excluding exchange rate factors.

The group's recent financial data confirm the downturn in the industry as a whole.

British luxury group Burberry Group PLC (BRBY.L) Bob Bailey released today's first half results: in the first half of September 30, 2014, Burberry PLC PLC Bob profit rose 7%, from 1 billion 31 million pounds a year earlier to 1 billion 100 million pounds, although the growth of 14% on a comparable basis, but the ring showed signs of slowing down. The group also warned that due to prudent travel channels, the second half of this year's revenue will decline in the middle to low single digit, and profit margins have downward pressure.

Another luxury brand in the country, Mulberry Group PLC (LON:MUL), Mai Baorui again issued a profit warning.

In the first half of the fiscal year, only 4% of the world's largest luxury goods group, LVMH Mo t Hennessy Louis Vuitton SA (MC.PA), MOET & CHANDON, Hennessy LV, will announce its three quarter earnings after closing the European stock market tonight.

The Crimea crisis, the record breaking cold spell in North America, the two air crash in Malaysia Airlines, the Japanese consumer tax rate, Hongkong's economic predicament and consumer confidence in Europe have suppressed the growth of the luxury industry this year.

Although the political situation in Hongkong has made Chinese tourists bypass, the sanctions imposed by the West have reduced Russians' expenditure, but tourism consumption is still the main engine of growth, while e-commerce is the fastest growing sales channel, with an increase of 28% in 2014.

The purchasing power of Chinese luxury goods is still on the top of the world. The total consumption in the first eight months of this year increased by 10% over the same period last year, a sharp slowdown compared with the same period last year and a trend of polarization, most popular among light luxury products and absolute luxury goods.

But this year, luxury goods sales in mainland China will decline for the first time, falling 1%, excluding exchange rate factors, by 2%, subject to official persistent attacks on luxury corruption, worries about the bursting of the real estate bubble and the progress of consumer shopping methods.

The Americas and the Middle East respectively have led the global luxury market by 3% growth. Europe and Japan have increased by 2% respectively, while the Asia Pacific region will grow by only 1%.

Bain & Company Bain consulting partner Claudia D "Arpizio" expects Hongkong to recover in the fourth quarter, and the impact of the Russian situation on demand will continue until 2015. In the long run, the Chinese market is expected to rise.

Accessories, which account for 29% of the luxury goods industry, are the driving force for the growth of the global luxury industry. This year recorded a 4% growth, of which shoe sales growth was the first time higher than that of leather goods since 2007, and sales of hard luxury goods slowed sharply due to the shrinking of watches in the Asia Pacific region.

In addition, the price of handbags this year is higher than 60%-130% in 2008, resulting in the flourishing of the secondary market.

The report predicts that by 2017, the global luxury market will be sold at 2500-2650 billion euros.