Japan, with one of the largest economies in the world accounts for an outsize portion of all luxury goods sales- last year about a quarter of luxury products were bought by the Japanese. Following the disasters, the Japanese priorities have changed routes and now have a different outlook.
Japan counts for an average of 13% of total profit for companies in the luxury industry like- Louis Vuitton, Hermes, Coach and Tiffany. In 2010, Japanese consumers at home and abroad accounted for 24 percent of all luxury goods sales.
Though luxury products are viewed as products for the upper class in other countries, in Japan, they have long been seen as an integral part of middle-class life. Middle-class consumers often cut back on vacations and expensive meals so they are able to buy luxury clothes or handbags. Now the Japanese are in a new reality- ending the materialist wants and focusing on helping others and bringing Japan back to basics.
4 comments:
The disasters in Japan will definitely see a decrease in production of luxury goods. There are more important issues going on in Japan that luxury companies need to focus on rebuilding and getting back to normal production.
word dave, it will be interesting to view the decline in these numbers next year as the priorties of their consumer society deteriates or is eliminated entirely in an effort to stabalize what was once a very powerful economy
With economic situation as it is right now in Japan, I don't see demand for luxury goods increasing in the near future. Right now people in Japan have more important things to worry about than luxury goods.
I agree, luxury goods are the last things on the minds of the Japanese. With the recent events, it wouldn't make sense for Japan to continue producing such miniscule luxury items considering the big picture, which is putting the country back together.
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