Luxury brands out of crisis faster than expected
22.07.2011 4451

Luxury brands out of crisis faster than expected

The global luxury goods market came out of the financial crisis much faster than expected. This is the conclusion made by the experts of Jones Lang LaSalle in the study of key premium retail zones in Europe.

Thus, London's New Bond Street is the most expensive shopping street in Europe, where rents reach 7900 euros per sq. m. On the Avenue Montaigne in Paris, rates can be 7 euros per sq. m. m, and in Moscow on Stoleshnikov lane - 500 euros per sq. m.

Robert Bonwell, Managing Director, Head of Retail Space at EMEA at Jones Lang LaSalle, said: “The luxury sector is one of the most internationalized retail spaces in the market, with almost all brands targeting a global expansion strategy. Most of them plan to move to Asia and emerging markets as a whole, thereby creating a new class of consumers with a good income and appetite for luxury goods. At the same time, the international composition of the traditional luxury shopping areas of London and Paris has forced a number of brands to increase investment in already mature and mature Western markets, expanding and updating existing stores. ”

James Dolphin, Head of EMEA Sales and Marketing at Jones Lang LaSalle, continued: “Despite the booming online offerings, the brand’s presence on Europe’s most prestigious streets remains a critical success factor for the luxury segment. After two years of reduced demand, the luxury retailer is responding to a return to consumer confidence with healthy expansion plans. Increased demand for the best rental space leads to an increase in rental rates. Other retailers also seek to capitalize on proximity to well-known top brands, and this additional demand for already rare quality showrooms puts even more pressure on bets. ”

The luxury sector has also bounced back to Europe; in 2010, a third of the total profits for some brands came from high sales in Italy, France, the UK, Germany and Russia.

Anna Savenko, Deputy Director of Retail Space Department at Jones Lang LaSalle, Russia and the CIS, notes: “Moscow is becoming the capital of world fashion along with Paris, London and Milan. The number of brands represented here is in no way inferior to Europe. Today, there is a clear tendency to open stores directly, without involving partners. In the near future, we will witness the formation of new luxury corridors, new brands entering the market, and expansion of existing stores. " The highest density of international luxury brands can be found in Paris. 100 of the most prestigious and expensive brands are sold in more than 150 stores. Only London has similar density indicators - 125 stores with the top 100 brands. In Milan, this number does not exceed 90, in Moscow and Rome - 66 and 59, respectively.

The global luxury goods market came out of the financial crisis much faster than expected.
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