Japan crisis is behind, as luxury shopping recovers to increase by 4% until 2020

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Tokyo invests in luxury again: in 2012, in the middle of international economic recession, in Japan they spent just 10,6 billion dollars on high-end items; conversely, current turnover amounts to 33 billion dollars. Due to business expansion, which is expected to increase by 3/4% on annual basis, while Tokyo’s luxury shopping has come back, in 2017, to pre-recession standards, by 2020 sales will outdo 2007 volumes. Such is the forecast provided by McKinsey&Company in their survey for Business of Fashion. Thanks to the economic intervention set off by Japanese Prime Minister, Shinzo Abe, Japan has successfully left stagnation and financial difficulties behind: from July till September GDP (gross domestic product) increased by 1,4%. Some factors, which are common to other markets, affect Japanese business: for instance, the tourism effect (Chinese tourists represent 7 to 10 per cent of the sales turnover); yet Japan’s market is unique to some extent. In the United States they experience Retail Apocalypse, while 70 per cent of Japanese customers say that they prefer to do the shopping at department stores.

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