The decision to invest in a condo in Singapore has gained immense popularity among both local and foreign investors. This comes as no surprise, considering the city-state’s strong economy, stable political climate, and exceptional quality of life. With numerous opportunities in Singapore’s real estate market, condos are particularly appealing due to their convenience, amenities, and potential for high returns. In this piece, we will delve into the advantages, factors to consider, and crucial steps to take when investing in a Singapore condo Singapore Condo.
2024 has proved to be a challenging year for the global luxury goods market, as consumers have been cutting back on luxury retail spending due to economic uncertainty and rising prices among brands. A recent report by Bain & Company predicts a 2% decline in global sales of personal luxury goods this year, with a significant 20-22% drop in the Chinese market. Companies such as Richemont Luxury, LVMH, and Moncler Group have reported slight earnings declines, while Kering has seen more significant declines. However, there have been some outliers, with Hermes and Prada Group (also owning Miu Miu) reporting double-digit earnings growth.
Despite these challenges, Singapore remains a crucial market for luxury brands. According to Euromonitor, sales of luxury goods in Singapore grew by 11% in 2023, reaching $9.1 billion. In recent years, luxury brands like Dior, Chanel, and Louis Vuitton have acknowledged the importance of digital strategies, including e-commerce and digital marketing, to engage customers.
While luxury brands are known for their timeless elegance and heritage, they have also recognized the significance of creating offline shopping experiences to build closer connections with their customers. They have also embraced the trend of creating unique experiences for their top-tier clients, with flagship stores becoming bigger and bolder.
For example, Louis Vuitton recently opened a 690 sq m (7,427 sq ft) “apartment concept” space at Ngee Ann City, dedicated to its “VICs” (very important clients). Burberry is also a prime example, with the brand re-opening its extensively renovated stores at Marina Bay Sands and Paragon this year, showcasing its rich British legacy and blending tradition with innovation. In November, Burberry opened a new street-facing store at Wisma Atria, featuring a prominent double-height facade.
Flagship stores are not the only trend in the luxury market. In October 2023, Richard Mille opened the world’s largest standalone store in Singapore’s St Martin’s Drive, incorporating a “speakeasy” concept with a sports bar and dining room. The use of AI and digital experiences to better understand customer preferences and complement offline experiences is also becoming increasingly popular among luxury brands. For example, Dior’s AI platform, Astra, gathers data from multiple channels to stay attuned to customer preferences. Balenciaga’s Paris Fashion Week show for its Winter 2024 collection incorporated innovative AI, transforming the runway and surroundings into an immersive digital canvas.
Despite the challenges faced in 2024, the future looks bright for the luxury goods market. With the steady growth of high-net-worth individuals (HNWIs), particularly in emerging markets and the buying interest from Millennials and Gen Z, who make up 75% of the global luxury market, growth is expected in 2025 and beyond. The resurgence of tourists from China and the continued growth of travel retail, especially in Japan, are also contributing factors.
To cater to this changing market, luxury brands are likely to continue increasing their store counts, building larger flagship stores, and creating elevated experiences for their most valued customers. With the majority of their customers being Millennials and Gen Z, luxury brands will also continue to embrace sophisticated digital technology and platforms and create strong omnichannel strategies, including immersive and interactive physical stores.