SINGAPORE: The luxury market appears to be insulated from ongoing global economic woes, as demand for luxury goods continues to be driven by the strong Singapore dollar and the growing number of wealthy tourists this year.
Experts have told Channel NewsAsia that the sector is poised for further growth due to the rising number of ultra-rich in the region.
"Normally if there is a crisis, sales will be affected. But fortunately, we haven't felt the effects yet... people are more willing to live the life, willing to spend their wealth," said Melvin Goh, managing director of EuroSports Auto, a luxury automobile dealer.
Previously, most owners of Lamborghinis, a luxury car, were in their 50s. However the age group now is getting younger, with entrepreneurs who have made it in their 30s owning luxury sports cars. More women are also going behind the wheels of a Lamborghini.
Data from research firm Wealth-X shows that 26 per cent of ultra High Net Worth Individuals (HNWI) with at least S$36.5m have a luxury car collection. Their appetite for the high life is unlikely to fade, said experts.
"The ultra HNWI are spending plenty. It's the high net worth (individuals) who has slowed down. So if you go to Louis Vuitton, and seeing what has been happening with handbags and wallets, you will find that sales have not been as strong," said Mykolas Rambus, CEO of Wealth-X.
"If you look at the high end, if you look what has been selling in the higher range, almost every brand is having success at that," he added.
Such resilient demand for luxury goods is also expected to drive the market higher, going forward.
In its recent survey, American Express forecasts that Singapore will see a 3 per cent luxury spending increase this Christmas over last
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