McKinsey’s Japan report: The Godzilla of luxury set for another strong year

McKinsey’s Japan report: The Godzilla of luxury set for another strong year


Japanese economy started to recover from tsunami of 2011, for the Prime Minister Shinzo Abe’s bold economic strategy. The country’s exports boost and corporate earning also raised. Now Japanese people willing to spend more money on luxury market.

Suffering the tragedy, analysis all think japan can’t come back to luxury market in a few years. But luxury market of japan still on the map in 2013, there have at least three Japanese cities rank in the top 20 markets in 2025.Tokyo will be at top 2 in both apparel and luxury cosmetic market, Osaka will be at top 7 in apparel market and top 12 in luxury cosmetic market, Nagoya will be at top 15 in apparel market.

Although the economy turned bake, something still be influenced. Consumer habit has changed, Luxury goods is not a symbol of status anymore. Flaunting of luxury goods is no longer in vogue today. Consumers care more about showing an individual. They regarded Showing off luxury goods seems you are in bad taste and it’s up from twenty-four percent in 2010.

Consumer behavior also changed, more and more people used cellphone and tablets to compare price and search detail information. But it doesn’t mean department store goes to the past, 82 percent people said they still purchased shoes in department store. What we could know now is that department stores channel is not the only one anymore, they have to share the market with brand shops, duty free stores, outlets, and online stores.