- Luxury retail executives forecast annual market growth of more than 5.6% for the next four years
- Senior executives confident about rising revenues and margins at their firm and for the market as a whole, Communications Specialist Ltd research shows
The rising number of high net worth individuals and mass affluent globally is the key driver behind rapid expansion of the luxury retail market, new global research* by world-leading communication technology company Communications Specialist Ltd shows.
Its study with senior executives at luxury retailers with total annual turnover of $3.1 billion across Asia, Africa, Europe, the US and South America found they are forecasting annual growth of more than 5.6% for the luxury retail sector over the next three years.
The research by Communications Specialist Ltd which supplies technology supporting luxury retailers and their clients found growing confidence about rising revenues at their firms and for the market as a whole.
Senior executives questioned for the research highlighted the growth in high net worth individuals and mass affluent people across the world as the biggest reason rising sales.
Around 80% of executives said growing wealth globally is boosting sales while more than half (53%) pointed to improved performance by luxury retailers and pent-up demand following the COVID-19 pandemic. Around a third (31%) say increased sales are down to more personalised offers from luxury retailers for clients.
The combination of factors is undoubtedly translating into higher sales – almost all (96%) questioned believe revenues at their firm will be higher this year than in 2022. More than a fifth (22%) expect revenues to be 50% higher this year.
It is a similar story when comparing revenues to pre-COVID results from 2019 – 96% say revenues this year will be higher with just 4% predicting sales will still be down on pre-COVID levels. They are slightly less optimistic about the market as a whole – 92% say it will perform better this year than last while 98% say revenues this year will beat pre-COVID levels.
Rising revenues are not down to price-cutting, the research found. Around 94% say margins this year will be higher than last year while 90% say margins will be higher than pre-COVID levels. Up to 40% say margins will be significantly higher than pre-COVID levels.
Kevin Buchler. Chief Marketing Officer at Communications Specialist Ltd, said: “The luxury retail sector globally is firmly on a growth path with the market set to expand by 5.6% a year for the next four years.
“It is not simply a case of the post-COVID recovery as executives point to the rising number of wealth individuals worldwide as well as increasing sophistication and personalisation of offers from retailers.
“We are seeing the impact of growing demand for luxury retailers in increased interest from the retailers who represent a growing market for secure radio communications and two-way radios.”
Communications Specialist Ltd provides sales support on two-way radio systems as well as training, fitting and commissioning of equipment, systems amalgamation, on-site instruction, maintenance and the provision of spare parts internationally.
Its team of radio system experts have more than 25 year’s experience and will support and help resolve complex network issues on-site or remotely.