Last updated: 20:01 / Tuesday, 25 June 2013
Robeco's Consumer Trend

Luxury “Abenomics”

 Luxury “Abenomics”

Japan is growing in self-esteem.  A good example is the growing appetite the country has to consume luxury items.  A good prelude for Prime Minister Shinzo Abe trying to pull their compatriots deflationary spiral in which bogged down decades ago.

After many years demoralized, the pioneer in real estate crises has seen its citizens lost since the late 80s over 75% of the value of their stock investments.  The global financial crisis, the earthquake and tsunami of 2011 Okinawa helped to boost morale.

But the campaign launched by Shinzo Abe to revive the economy is paying off.  Consumer confidence is surged strong, especially in the luxury brands.  Jack Neele, responsible for the strategy of Robeco Consumer Trends, follower of trends in consumption, follows closely names like Richemont and Salvatore Ferragamo, direct beneficiaries of the growing interest in luxury in Japan.

Brands like Baccarat sales have risen 20% so far this year.  Some firm’s of jewelry and high-end watches and Richemont's target market, are seeing sales doubling in recent months.  Kering, the parent company of Gucci and Bottega Veneta is giving a facelift to its stores in Japan to the growing interest in their products.

Although the Nikkei is taking a breather in the past weeks, in line with other markets, from November to May, the index has come to appreciate more than 50%, contributing significantly to improving the mood of the country.

The policy called "abenomics" seeks to return the country to a sustained growth in the next two years, removing the specter of deflation even if it means to flood the yen markets.

Japan, along with other Asian countries, seems to be taking the baton from China, where economic uncertainties are weighing on consumption of exclusive products.  While, in the opinion of Jack Neel, names like Salvatore Ferragano still have tour in the Chinese market, the manager has lowered its exposure to that country in favor of other markets in the area, which still sees great potential.

Luxury is one of the trends of consumption in Neel focusing to achieve excellent performance in their management.  Through its analysis, Robeco Consumer Trends has managed to outperform the world in more than 9% annually over the past five years.