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The Luxury sector will also have to evolve

The luxury sector will increasingly depend on tourism but also on the changing shopping patterns of the consumers. Today 58% of the so-called Generation Y (Net generation) go on the Internet for informations about luxury goods (Fig.Deloitte). About 45% of luxury products consumers in the world are tourists and among them 37.6% are Chinese (Rep.HSBC). According to this report the luxury goods sales should increase 5.5% in 2016. Another recent report, however, is less optimistic: it is projected that by 2020 the growth of this sector will be limited to 2 or 3%, that is 3 times less than in the early part of this decade (Bain&Company). In all cases, the relevance of these forecasts will clearly be contingent on China's economic performance. This is so true that the latest figures from the Swiss Watch Industry (FH) highlight the current difficulties in the luxury sector: the Swiss watch exports to Hong-Kong nearly halved from CHF 327 Million in March 2014 to CHF 176 Million in March 2016. And we must not underestimate the security challenges which have a negative impact on the tourism especially in Europe. The introduction of new technologies and the presence on the social networks will constitute the other great challenge that the luxury industry will have to face. For indeed, the Internet shopping is rapidly expanding in a global market estimated at € 280 Billion. All major groups in this sector are already under an increasing pressure of mobile e- commerce. And the opening of new luxury boutiques throughout the world will not be enough to meet the needs of the new consumers.

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