Luxury goods market growing in Poland

2010-07-06

As demand for luxury goods grows in Poland, Polish jewellery retailers have been focusing on developing an exclusive offer, according to Rzeczpospolita. By way of example, Apart has recently opened its ninth store under the Apart Exclusive brand name, aimed at affluent customers, in Poznan. The chain sells luxury jewellery and brands such as Breitling, Vacheron Constantin and Baume & Mercier. Another exclusive Apart establishment is due to open in Wroclaw in August 2010, and the retailer intends eventually to own luxury establishments in every large city in Poland.
W.Kruk is also focusing on the development of its luxury offer, although the retailer does not own a separate chain for exclusive goods. However, in 2009, the company set up the first Rolex store in Poland, which also offers W.Kruk jewellery. In addition, the company plans to introduce the Tiffany brand on the Polish market. Tiffany’s jewellery is, initially, to be sold at W.Kruk stores, but the firm is also considering the launch of single brand stores.
The Polish luxury goods market is still far from saturation point. Around 50% of world-famous luxury jewellery and watch brands have representatives in Poland, according to KPMG. Market representatives emphasise, however, that demand for exclusive goods is growing more rapidly than the casual market in Poland.
Worldwide, demand for luxury goods has started to increase again, after a weak 2009, when there was a 6% reduction in sales. In 2010, the global market for exclusive products is expected to increase by around 4%, to €160bn.

There is already a sizeable group of people in Poland who own a house and a good car. Now they are looking for other luxury goods they could spend their money on. And they are increasingly turning to jewellery and
watches. On the other hand, as incomes have grown, diamond rings have come within the financial reach of the average Pole. More and more people decide that they can afford to buy expensive items of jewellery every
once in a while, especially to mark some special occasion. This trend is further stimulated by the marketing efforts of jewellery retailers, who contribute to the growing demand through advertising campaigns in women’s magazines.

Patrycja Nalepa
Senior Retail Analyst, PMR Publications