According to this white paper from EIU
, the current slow-down in luxury retail spending that recently has been noted in Asia is temporary and will pick up again thanks to growing middle-class and high-income households. The report states that it is the expanding aspirational middle class who will provide market growth, and the forecast for retail sales is stronger for Asia than any other region.
China’s dominance will grow as Japan’s influence diminishes. India and Indonesia will become key markets over the long-term, especially as India opens up more to foreign investment. However, with many of the global luxury brands based in Europe and the US, exchange-rate will fluctuate and firms must find a balance between local pricing and unpredictable currency movements.