Luxury market in emerging cities to reach $62.6 billion in 2019

By

Barbara Santamaria

Published
Oct 9, 2015

Growth in emerging cities such as Shanghai, Mumbai, Mexico City, Istanbul, Tel Aviv, Jakarta, Kula Lumpur, Ho Chi Minh City and Lagos is expected to be buoyant in the next few years to 2019, according to an in-depth market analysis by Wealth Insight.

The luxury market in 10 emerging cities was estimated at $29.41 billion in 2014, and as the global economy continues to shift towards emerging markets, the luxury industry is estimated to reach $62.6 billion in 2019.

Overall, the market, which includes high-end fashion, jewelry and watches, spirits and wine and high-end cars, is expected to be strong over the forecast period, with CAGRs of over 15%.

While Jakarta and Tel Aviv are the upcoming markets, Shanghai and Bangkok show slower growth. The luxury industries in Mexico City, Mumbai and Istanbul offer the most promising prospects for expansion, and Lagos, Kula Lumpur and Ho Chi Minh City are the ones to watch.

The report also found that counterfeit products will continue to be one of the most pressing challenges facing luxury goods in Asian cities.