Japan’s luxury shoppers move on

Japan’s luxury market is worth as much as $20 billion—second only to the United States. Yet Japanese consumers’ seemingly insatiable appetite for luxury goods has declined, with the current economic crisis not only reducing discretionary spending but accelerating fundamental shifts in their attitudes and behavior. While these changes are likely not temporary, the market will remain very large and attractive. If luxury players want to succeed in such an environment, they must adjust their strategies.