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Pressnews.biz (Press Release) Mar 10, 2014
-- Singapore has been one of the most open and competitive markets in the world. The economy of Singapore is broadly characterized as the mixed economy. Even though Singapore firmly promotes its free market policies and practices, the government intervention in the management of macro-economic issues and major resources of production including land, labor and capital is apparent to a certain extent. Despite the deficiency of natural resources, the country has been able to empower its economy largely on account of its strategic location, at the center of Southeast Asia. This has significantly resulted in its progress as a prominent center of trade, services, communications and tourism. Regardless of its small geography and the scarcity of raw materials, Singapore’s per capita GDP has remained amongst the highest in the world, amounting to approximately USD 51,250 as witnessed in 2012.
The luxury goods market in Singapore has displayed a strong growth trajectory over the past few years. Luxury goods have become an integral part of the lifestyles in Singapore as compared to countries such as India, China, Taiwan and others where the purchases of luxury goods are mostly driven by the idea of a public display of wealth and affluence. Although, the economy of Singapore has been significantly impacted by impact of euro crises, the domestic luxury goods market has however showcased a remarkable resilience with regard to these pressures. Singapore luxury goods market has registered a significant growth in revenues, reporting a healthy CAGR of 13.8% from 2007-2012.
Singapore luxury goods market covers various types of product categories including designer apparel, premium footwear, luxury watches, high end cosmetics and fragrances and others. Designer apparels have been the highest contributing category in the market, forming around 26.0% of the market revenues. Premium cosmetics and fragrances stood as the second highest category in terms of revenue contribution. Designer jewelry has emerged as one of the fastest growing segments in the market for luxury goods in the country, whose revenues have doubled over the span of 2007 to 2012.
Some of the important factors which have fueled growth in the luxury goods market of Singapore include increasing levels of gross domestic production, inclining income levels, growing population of upper middle class people, high urbanization, growing proportion of affluent class in the overall population, shifting social attitudes towards the display of wealth and others. Moreover, apart from the aforementioned attributes, the advantage of being an international free port is another major factor which has encouraged the sales of luxury products in the country over the years. This has resulted in a comparatively higher spending by tourists in Singapore relative to its neighbors. Owing to these factors, many premium international brands are looking forward to expand their investments and presence in Singapore.
Since the country is developed, financially stable and fully urbanized as compared to other Asian economies, the market for luxury goods in Singapore has already been developed to a greater extent. Therefore, growth rates of the luxury goods market in Singapore have been relatively lower as compared to the neighboring Asian countries such as India, China, Thailand and others.
Singapore luxury goods market is a highly organized market with products majorly being imported from Europe and the US. Further, owing to the country’s favorable economic characteristics, the market for luxury goods has observed increasing competition in recent years. Some of the popular high-end brands in Singapore luxury goods market across various product categories include Chanel, Louis Vuitton, Ralph Lauren, Prada, Burberry, Jimmy Choo, Salvatore Ferragamo, Estee Lauder, Clinique, Lancôme, Rolex, Cartier, Omega, Panerai, TAG Heuer and others.
According to the research report “Singapore Luxury Goods Market Outlook to 2017 – Rising HNWI Population to Propel the Growth” by Ken Research, given the rising prosperity fuelled by rapid growth and development of the Singapore’s economy provides base for the business of luxury goods in the country. Moreover, as these goods are majorly imported from outside nations, the issues faced by the companies on account of global economic disturbances are inevitable. However, considering the country’s present macro-economic scenario such as high tourist footfall, growing number of HNWI’s, rising disposable incomes and others, the prospects of luxury goods industry are expected to be highly positive in the following years.
The report provides detailed overview on the luxury goods market in Singapore and helps the readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, luxury goods manufacturers, suppliers and other stakeholders align their market centric strategies according to ongoing and expected trends in the future.
Contact Person: Ankur Gupta
E-mail: [email protected]