Luxury goods are on the rise. People are interested in them, as proven not just by the vast boom in online sales, but also by the fact that luxury brands are starting to focus on area other than their priority segments. This is why it is no problem to find a Versace hotel or luxury furniture and home accessories by Armani Casa.
Luxury goods include mainly clothing, accessories, jewellery, watches, cosmetics, wine and alcoholic beverages. However, you can also find luxury furniture, unique electronics and stationary.
The greatest fans of luxury goods include Russia and China. Both these countries have had a major impact on the growth of the luxury goods segment, although they are slowly easing their foot off the gas pedal. This year, China has started stagnating due to the economic downturn and consistent cutting of spending on luxury goods. However, a modest recovery is expected again from 2017. As for Russians, there have been economic and geopolitical changes since 2014 that have affected the Russian economy. Hence, Russians have stopped buying expensive trifles and are focussing more on investment.
Surveys have showed that Czechs do not consider luxury goods as a means of satisfying their needs, but instead associate them with a desire to gain the respect of their peers. Symbols of luxury goods for Czech are cars, watches and clothing. On the other hand, things like a luxury vacation, home furnishings or luxury services are not as highly regarded here. There are countless shops with luxury goods in the Czech Republic, with Pařížská Street in the forefront. But who actually buys these luxury brands? One half of the buyers are actually Czechs, which the other half consists of foreigners, primarily Chinese and Russian. Visitors from China and the USA spend the most per single purchase in the Czech Republic.