89pc of CEOs optimistic about state of luxury: survey The top executives of the world’s leading luxury brands are optimistic about the future growth of the industry, expecting a rise in sales of more than 9 percent over the next twelve months, according to a recent Departures survey. Departures magazine and Ledbury Research’s inaugural “Global Luxury CEO Survey” of the fourth quarter of 2013 surveyed executives regarding the market, as well as strategies as brands continue to grow globally. The survey found that 89 percent of CEOs are optimistic about the state of luxury and 89 percent believe that North America is the most important contributor to growth. “Departures’ Luxury CEO Survey forecasts a 9 percent rise in luxury sales over the next 12 months, and 89 percent expect North America to be the most important contributor to growth in luxury business sales over the next five years,” said Steven DeLuca, senior vice president and publisher of Departures, New York. “The focus of our survey is on the direction that the globe’s luxury CEOs see the market going,” he said.Currently, luxury CEOs are focusing on their top customers, here called VIPs.” The Global Luxury CEO Survey is based on the responses from nearly 70 senior executives, mainly the global CEO, president or managing director of companies with annual sales ranging from less than $50 million to $1 billion plus. Industries surveyed included travel and hospitality, apparel and clothing, home and design, jewelry, watches, footwear, leather goods and accessories, fragrance and beauty, electronics and other. Time Inc.’s Departures magazine conducted the survey with Ledbury Research in September. Rather than focusing on the past year, the Global Luxury CEO survey chose to look ahead to predict how the market will evolve and grow. Looking forward After three years of consecutive growth, the study predicts that luxury sales will rise 9 percent over the next 12 months. This growth is propelled by ecommerce and mobile commerce along with other factors such as United States and Chinese growth rates. Although 89 percent of CEOs are optimistic about the market, external factors are listed as harming business. Of the surveyed CEOs, 60 percent feel that political unrest has a negative impact on their businesses, especially among those in the travel and hospitality sector. According to the study, 58 percent of respondents feel confident about the U.S.’ economic recovery. The U.S. recovery is seen as the most important contributor to the luxury market as East Asia, particularly China and South Korea, slips to second place for the next five years.
Posted on: Thu, 07 Nov 2013 06:35:25 +0000
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