Market overview – luxury goods in Poland
There are good prospects for investments in luxury goods. KPMG shares for the seventh time the results of studies and conclusions on the condition and development perspectives of the luxury goods and premium market in Poland. To begin with, the value of that marked increased by 15% (PLN 16.4 billion) in comparison with 2016. A general summary concerns its pillars, such as consumer goods (clothes, accessories, alcohol), cars, property, yachts, planes, hotel and SPA services, along with furniture.
How was 2016 in terms of the structure of luxury goods market? The first position, which is also the highest in terms of value (PLN 8.5 billion), is held by luxury cars, followed by clothes and accessories amounting to PLN 2.2 billion. In both cases, the increase in relation to the previous year amounted to 28% – 29%. As for further analysis of the market segment, there are hotel and SPA services with a total of PLN 1.2 billion, along with furniture and alcohol amounting to PLN 0.7 billion.
Is it worth investing in this market range? According to the KPMG report, the perspective of a further increase of the luxury goods market looks promising and optimistic. By 2020 the sale is projected to increase up to PLN 20.9 billion, which is a 27% increase in comparison with 2016. What is worth investing in? In this time interval, the projected average growth rates are as follows: jewellery and watches – 10.2%, stationery – 8.4%, alcohol – 7.4%, cars, clothes, and accessories – by 6.5%, and last but not least furniture – by 3.9%.
Who feeds and forms the market? Who buys luxury goods in Poland and what is their criterion for purchase decisions? This knowledge, which comprises consumer insight, defines customer’s needs and powers the strategic process while forming the identify of a new premium brand. So what is important to customers turning to top-shelf products? According to the KPMG survey, market participants are divided into three groups: wealthy with a monthly income of PLN 7.1-10 thousand gross, very wealthy with income of PLN 10-20 thousand gross, and rich with income of over PLN 20 thousand gross Quality is the most important factor which induces them to buy a product. Appearance, design, and aesthetic qualities are additional arguments for making a purchase decision, followed by the prestige of the brand, uniqueness, and rareness of the product, opinions and recommendations, along with the brand’s tradition and history. Equally important for such customers is the price, brand recognition and the values it stands for, along with the fact that the brand is represented by a well-known personality.
Investors who plan to invest in a luxury brand will draw attention to the conclusions of the survey on luxury as perceived by Poles. Premium purchases are primarily identified with high-quality materials, craftsmanship, and reliability. For some interviewees, luxury is tantamount to fun and pleasure. Others fulfill themselves by a feeling of individualism. Many people, especially those perceived as rich, believe that luxury is an inherent part of creating a personal image, gaining recognition, and respect in the society.
The results of the study presented in this paper were quoted from the KPMG Poland report titled The Luxury Goods Market in Poland, the 2016 edition.