As Europe continues to lag behind, Asia surges ahead and the United States is recovering well, signalling a strong start to the year for the luxury industry.
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Hainan island – one of the stop-offs for Watches and Wonders 2020 – reels in tourists and Chinese shoppers with its beaches, palm trees and duty-free malls, a sector that is now opening to competition. Richemont is in the running through a collaboration with China Duty Free Group and a stake in Dufry.
In the space of a year, Farfetch has become the one to watch in luxury e-commerce, a position confirmed by the billion-dollar investment by Richemont and Alibaba in the company, which is still reporting losses, and by its share price performance. In the twelve months to February 18, Farfetch stock gained almost 450%.
As confirmed by Richemont’s third-quarter results, jewellery sales remain strong to the point that jewellery is the most promising segment in the personal luxury goods market. Driving this growth: changing purchasing patterns and soaring demand among Chinese customers.
After a forecast decline of 23% in 2020, Bain & Co expects the personal luxury goods market to gain in the region of 15% this year. All eyes are on the evolution of Covid-19, macroeconomic factors and the return of international travel.
Over the past twelve months FHH Journal has reported on watch industry news, covering everything from the markets to brands and their products. Here, in brief, are some of the events that marked this unusual year.
Switzerland’s Richemont, China’s Alibaba and France’s Artémis (Kering) are to invest over a billion dollars in British marketplace Farfetch in a bid to dominate the Chinese online luxury market. The race with Amazon is on.