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MasterCard: Triple Digit Growth in Luxury
Demand Expected from Older Premium Consumers
in Asia/Pacific over the Next Decade
Hong Kong, 4 September 2007 – Strong demand for luxury goods and services is predicted
from the glittering silver market, with triple digit growth expected from the older premium
1 2
consumers in markets in Asia/Pacific over the next decade, according to the latest
MasterCard Worldwide Insights report from MasterCard. The company’s latest research
3
focuses on the most important drivers of demand for luxury: the young premium consumers
and the older premium consumers. These two segments will account for approximately 83%
of the US$258.7 billion spent on luxury goods and services by 2016.
With the exception of China and India, growth in demand for luxury goods and services
from older premium consumers in markets across Asia/Pacific will outpace growth from the
young premium consumers. The greatest growth in demand for luxury goods and services
from the older premium segment will come from Malaysia, which is expected to increase
350% from 2006 to 2016, followed by Indonesia with a 200% expected increase and Korea
with a 176.5% expected increase. In terms of dollar volume, the older premium market in
Japan (US$27 billion in 2006 to US$67.8 billion in 2016) and China (US8.6 billion in 2006
to US$18 billion in 2016) will continue to drive the largest demand for luxury goods and
services.
By contrast, in China and India, demand for luxury goods and services by young premium
consumers will increase more quickly than that of the older premium consumers. In China,
this is attributed to the fact that the young premium segment comprises those with the
highest education levels and highest incomes. Born after the periods of the Cultural
Revolution and post Mao, China
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