Moscow Cuts in Line of the Luxury Fashion Fastest Growing Cities
Moscow will be the second city in the world where luxury fashion sales will grow more in the next decade, according to McKinsey, surpassing London, Milan and New York
That emerging markets are increasingly important for the luxury industry is once more than obvious trend currently. However, what is perhaps most striking is that even cities of these emerging countries may join the list of the fastest growing cities of luxury fashion in the next decade.
According to the latest report Unleashing growth fashion city by city, by consultancy firm McKinsey, the cities where luxury fashion will grow in the next decade will be Paris, Moscow, London and Milan. The Russian capital is placed in an unexpected second place, leaving behind fashion capitals like London or Milan. It is not the only «emerging» city in the top 10, since Singapore is the eighth on the list and another Russian city, St. Petersburg, close the top in the tenth position
The report leaves us other interesting findings. For example, emerging markets will account for 28% of 2025 total sales of the luxury fashion market. This percentage is double than 2010 level (14%) and multiply by seven the level of the previous decade (in 2004 emerging markets accounted for just 4% of the market for luxury fashion market worldwide).
Another finding of the report is the growing importance of women’s fashion for the industry. This segment will accelerate its growth in the next decade (with an annual rate of 4.8%, compared with 3.3% previously), which in total will grow by 50% over current levels. And of course, will be the emerging markets that will drive this growth, led by China and Russia. According to McKinsey, women’s fashion will add the 60% growth of the global market in the next 10 years, accounting for 55% of the total market share in 2025.
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