Romania’s Luxury Goods Market Dn Up To 35% In ’09, To EUR350M – Research

Petcu said the luxury goods market will revive this year.

According to a research conducted by CPP Managing Consultants, Romania’s luxury goods market overran the Bulgarian luxury products market, which was estimated at EUR250 million, while in Serbia it reached EUR300 million.

Petcu said the most affected markets were those in Bulgaria and Ukraine which will revive in 2011, adding the luxury goods market in Hungary and Poland leveled off in 2009.

According to the research, Romanian registered a 20% to 30% decrease in sales for most luxury products in 2009, and the biggest decline was reported on the luxury cars and boats market. Spa centers were the only segment that kept afloat.

Petcu estimated the luxury goods market will fall by a maximum 5% this year for most products, except cars and yachts, adding an upward trend will be registered during winter holidays.

The research shows Max Mara, La Perla, Canali and Pal Zileri are among the luxury fashion brands that saw an up to 20% decrease in sales last year, while Louis Vuitton registered the best results, with sales estimated at EUR3.1 million.

Hugo Boss posted sales of EUR1.1 million, Canali of EUR1.9 million, Max Mara of EUR1.5 million and Ermenegildo Zegna of EUR2.4 million.

About seven luxury stores were closed down in 2009, such as La Perla (franchiser Alsa Boutique), Cerruti 1881, Versace Jeans Couture, while Hugo Boss was relocated.

Alsa Boutique also plans to close down or relocate stores Marella and Mariella Burani.

On the other hand, Romania’s luxury goods market faces a slight increase in sales of counterfeit luxury products. The most demanded counterfeit luxury products are those marketed under brands such as Louis Vuitton, Dolce&Gabbana, Prada, Chanel and Dior.

Another problem consumers are facing is that luxury products from previous collections are sold at new collection prices.

CPP analysts said Emporio Armani will enter the Romanian market this year, while Hermes and Burberry will open shops on the local market at the end of 2011.

The research also shows international hotel brands, such as Four Seasons, Mandarin Oriental and Kempinski are interested to operate in Romania.

As far as the spa center market is concerned, international brands such as Givenchy, Biodroga and Molton Brown are also interest in the Romanian market.

According to the CPP research, the Liberty Center mall, opened in 2008, registered the worst results in capital Bucharest, after 30% of its stores closed down. Baneasa Mall also reported losses in 2009, as 10% of the stores were closed down and renters renegotiated renting contracts to pay up to 30% less.

AFI Palace Cotroceni, which is considered to be the biggest mall in Romania, registered good sales results in 2009, while at the beginning of 2010 also saw a decline in sales.