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2<br />
Japan: slack consumption further weakened<br />
by the earthquake<br />
Japan Luxury Goods Market Trend (B€)<br />
21<br />
2006<br />
0%<br />
21<br />
2007<br />
-3%<br />
20<br />
2008<br />
18<br />
K @ Constant exchange rate<br />
18<br />
-12%<br />
0%<br />
-18% -10%<br />
2009 2010E<br />
Japan<br />
• Japanese market has been losing share<br />
since 2007, driven by macro-economic and<br />
demographic drivers<br />
-Mature consumers reducing their spending in<br />
luxury goods (baby boomers retiring)<br />
-Young generations rejecting global brands<br />
o Lower purchasing power than previous<br />
generations<br />
o Less dependence on Western trends<br />
o Digitalization of experience (less is more)<br />
• Despite positive effect of JPY<br />
appreciation in 2010 (+12% vs €), the<br />
market stagnated in 2010<br />
• In 2011 the market will also be affected<br />
by the March 11 earthquake<br />
9
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