luxury brands target Indonesia

A growing number of luxury brands in Indonesia, despite the challenges faced by companies that are growing in the country. Gucci, a unit of PPR, is the development of a flagship store in Jakarta with an area of ​​5500 square meters, while watching to exploit the favorable trend in the Asian country. Prada Laptop Bags "We firmly believe in the potential of the Indonesian market due to sustained economic growth, stabilization of the political environment and the rise of the bourgeoisie," Alexis Babeau, CEO of PPR luxury division, has told the Wall Street Journal. "Indonesians show a taste for luxury, they appreciate quality products and appreciate the craftsmanship." As further evidence of the involvement of PPR, François-Henri Pinault, CEO, and more than ten other executives visited Indonesia in early 2012 to assess the prospects. Some issues include the level of development of emerging infrastructure, a complex legal environment and the turnover anything between 10% and 200%, but still room for optimism. Euro Monitor, the knowledge provider, has estimated that the sale of luxury goods in Indonesia is expected to reach $ 742m this year, almost double the total in 2007. With plenty of room for future growth Hermes, the French luxury group, opened its third store in Jakarta earlier this month, specializes in high-end watches, while Fendi owned by LVMH, and two new sites in Indonesia has revealed in 2012. Other players tap Indonesia Galeries Lafayette SA, a French company and shopping center, a chain of department stores in Thailand, who hopes to have five local offices in 2017. Increased according to a study by CLSA Asia Pacific, Brokerage, the number of people with assets of more than $ 1 million by 25% per year, the highest in Asia. Oliver Petcu, founder of the CPP consultant luxury industry, argued that joint ventures and franchise offers most businesses today rely on almost become a thing of the past. Consumers, he said, are enjoying now at a stage "show brand have pockets." He added: "It is this appetite was more."