Investing in Asia?s growing appetite for luxury: four ways to get started
A model walks the runway at the Burberry show during London Fashion Week.
Many of the developing countries in emerging markets, especially in Asia, have experienced rapid GDP growth and increasing wealth over the past decade. Growing wealth coupled with rising disposable incomes has led to a steep rise in demand for luxury goods and services.
China, India and Indonesia are three of Asia?s largest emerging economies with a combined population nearing 2.75 billion and a combined GDP exceeding $US10 trillion. Indonesian GDP per capita crossed $US3500 in 2013. This is expected to kick-start higher growth in discretionary spending.
Rising disposable incomes of the middle class lead to higher buying power and more demand for aspirational goods. So, it is no surprise that we see new showrooms for brands like Gucci, Prada and Louis Vuitton popping up in Mumbai, Jakarta and Shanghai. With the ease of online stockbroking Australian investors are now much more willing to buy overseas stocks: if you are looking to get exposure to this long-term trend in demand for luxury goods in Asia, luxury stocks are worth considering.
While the consumers are in Asia, the brands people look up to and aspire for are usually from US or Europe.
Designer bags, alcoholic beverages, jewellery and designer clothing are some of the diverse products we get in this sector: Here?s four top international stocks from the luxury sector.
These are just four of the biggest luxury names available outside the ASX.
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