Positive Trends in Emerging Markets for Luxury Goods

Opportunities: positive trends in large-scale luxury and emerging markets The trend of dominating the global luxury market is globalization, integration and diversification (Tavoulari 1). Globalization is the result of an increase in exports of these products, higher brands and tourism. The integration involves the growth of large companies and the brand ownership in many luxury sectors. One example is LVMH. This proves that LVMH is one of the leading luxury goods companies in the field of luxury goods, fashion, and cosmetics.

Due to the dynamic change in the luxury goods industry, the luxury goods market has declined rapidly, and the trend of consumption of luxury goods has changed greatly. Firstly, "rapid increase" has become a recent trend, which is a practice for luxury consumers "to find cheaper products and services with less important categories". (Boston Consulting, 2002) Another relative trend is "lower trading", "fusion of luxury and fashion brands". (Okonkwo, 2004) Combinations of high-end accessories and fashion apparel are becoming more common due to the tendency of "downward trading". Therefore, many luxury consumers will not hesitate to carry Chanel or Dior handbags, even Zara or H & M clothing.

The trend of acquiring luxury watches is now increasing, which has had a big positive impact on the entire market of watches. Sales of luxury watches in major developed countries in Europe and the US are expected to recover gently (clock and clock: Global Strategic Business Report, 2010). The Swatch Group's sales account for approximately one-third of sales, accounting for about half of the operating profit of the Omega brand as a whole. In 2008, Omega was ranked third in the market share of luxury watches in Rolex and Cartier. Omega expects sales in 2010 will exceed 2007, according to company president Steven Arcart. The degree is caused by its distribution strategy. It is sold through its wholly owned boutique network (Donville and Muller, 2010)