MILAN, ITALY, October 21, 2016:The terror threat in Europe, a strong dollar and uncertainty over the U.S. presidential elections have eroded the confidence of the globe’s big-spenders, holding luxury purchases flat in 2016, according to a study released Thursday.
Spending on luxury apparel, accessories and other personal items is expected to hold steady at 249 billion euros ($273 billion) this year, a study by Bain Consultancy for the Altagamma association of Italian high-end luxury producers. Add in spending on luxury cars, yachts, jets, cruises, hotels, fine art, design and food, and the market tops a stunning 1 trillion euros.
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As political events and monetary policy exert greater influence on luxury spending patterns, brands have turned their focus to wooing buyers in their home countries rather than counting on tourist arrivals to buoy sales, said Bain partner Claudia D’Arpizio.
“This is not happening by default,” D’Arpizio. “Brands are refocusing on the local customer base and working to develop products that are more affordable and more inclusive to meet their needs.”
For the first time, spending by China’s super consumers shrank, albeit slightly from 31 percent of the total to 30 percent of the total. Part of the shift was due to an increase in the number of middle-class Chinese travelers, who collectively spend less than higher rollers, she said.
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While U.S. presidential elections always put the freeze on consumer spending, D’Arpizio said this year’s squeeze was a little tighter due to a strong dollar, which also hurt tourist spending, and higher oil prices.
In Europe, brands are also working to cultivate local buyers as the threat of terrorism has hurt tourism. They are seeing local consumption recover in Italy, Germany, Spain and Britain. But spending remains soft in France, with terror attacks impacting both tourists’ and locals’ sentiment, D’Arpizio said.
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Britain’s decision to exit the European Union so far has proven a boon for luxury spending, with the falling pound encouraging both domestic consumption and travelers to spend.
“Currently, London is the cheapest luxury market,” D’Arpizio said. (VOA)
Tension in Pakistan increasing due to emergence of Radical Political Groups.
Extremist groups are gaining a footing in Country’s politics.
According to reports, goverment’s efforts are not enough to stop the emerging radicalism in Pakistan.
Concerns are being voiced in Pakistan about how a few radical groups with proven terror ties have been allowed to re-brand themselves as political parties.
Taj Haider, one of the prominent and founding members of the opposition Pakistan People’s Party (PPP), which has been in power five times since 1970, told VOA the country is again seeing the trend of extremist groups camouflaging themselves to enter into politics.
“Religion and politics cannot go hand in hand, but unfortunately this is our new reality. We have seen the recent by-elections in Lahore and Peshawar where militant-turned-political parties were able to mobilize people and gather votes,” Haider said. “And these so-called new political parties, with proven terror records, look determined to contest the upcoming elections in 2018.”
In a recent high-level party meeting presided by PPP chairman Bilawal Bhutto Zardari, the son of Pakistan’s slain Prime Minister Benazir Bhutto, the government was sharply criticized on its inability to forcefully implement the National Action Plan and bar proscribed groups from entering the political sphere.
The National Action Plan is a 20-point strategy devised to combat extremism in 2015 that clearly states no banned groups can operate in the country by changing their names or identity.
Analysts say many other political parties are also agitated and wary about the recent political dynamic that has allowed radicalized groups to enter the political arena.
“The government has repeatedly said it will not allow the hardliners to enter into politics, but the reality is different, these parties are going into masses,” Rasul Baksh Raees, a prominent analyst from Pakistan told VOA.
“As long as these proscribed groups stick to their extreme ideologies and violence, they will be a danger to the society and democracy itself.”
PPP’s acute criticism came as Hafiz Saeed, the alleged mastermind of 2008 Mumbai terror attacks and leader of Jamaat-ud-Dawa (JuD), inaugurated the office of his newly launched political party Milli Muslim League (MML) in the eastern city of Lahore.
Pakistan’s Election Commission rejected MML’s party registration application in October, citing its link to Jamaat-ud-Dawa, a U.S. designated terror-sponsoring organization.
But MML looks determined to contest the upcoming state and provincial elections. The party has several offices, has launched a website, and has a social media team spreading its messages through Facebook and Twitter.
Pakistan’s government has repeatedly emphasized it will not tolerate any political party with a proven record of promoting violence and terrorism to use democracy and political means to spread their extreme ideologies.
But critics still say the government is not doing enough to stop radical groups from entering politics.
“Look what happened in Lahore’s recent by-election and who can forget the power show by extremists on the roads of Islamabad. The government was totally helpless,” Raees said.
During the Lahore election in September, a MML backed independent candidate secured the fourth position in the race. The by-election was also contested by Tehreek-e-Labbaik (TeL), another extremist religious party created to carry-on Mumtaz Qadri’s mission, the bodyguard who killed Punjab’s Governor Salman Taseer in 2011 after he had demanded reforms in the controversial blasphemy law. Mumtaz Qadri was later sentenced to death.
In November, thousands of followers of the Islamist group Tehreek-e-Labaik blocked Islamabad roads for weeks and demanded the resignation of Law Minister Zahid Hamid, after accusing him of blasphemy. The government eventually surrendered to hardliners’ demands after Pakistan’s military played the role of mediator.
The experts say the emerging trend of politicizing militancy is a danger to democracy. They also point out the sectarian and hardline rationale will further complicate the situation in the country that has been trying to combat terrorism for more than a decade.
“Imagine when these hardliners, through political parties, will spread their extreme views on the grassroots level. What will be the future of this country?” Raees said.
But some politicians dismiss the blending of radicalized groups into politics. Haider believes the people of Pakistan can differentiate between politicians and extremists and will not allow militant-turned-politicians to thrive.
“If you look at the past, the religious parties including the Jamaat-i-Islami [an old religious party], despite having a huge following, were never able to clean sweep or get majority in the electoral process of the country,” said Haider.
“Even now, with all these efforts, I believe Milli Muslim League or Tehreek-e-Labaik will not be able to pull large numbers during the general elections. Religious or sectarian votes are scattered in the country and can’t be unified and will not help these newly established political parties to win a prominent number of seats.” VOA