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)
India and Canada pledged to fight terrorism in all its forms
Modi and Trudeau also agreed on the Framework for Cooperation on Countering Terrorism and Violent Extremism
Both the countries are looking forward to a cooperative future
India and Canada on Friday pledged to combat terrorism in all its forms and manifestations while declaring that no country should allow its territory to be used for terrorist and violent extremist activities.
The assertion by the two countries came in a joint statement issued after talks between Prime Minister Narendra Modi and his Canadian counterpart Justin Trudeau and assumes significance in the context of perceived softness on the part of Canada towards Khalistani separatists operating on its soil.
“Recognising that terrorism, violent extremism and radicalisation to violence present acute challenges to global peace, stability and prosperity, the leaders resolved to combat terrorism and violent extremism in all their forms and manifestations,” the joint statement said.
“They called for bringing terrorists to justice and holding accountable state sponsors of terrorism, including cross-border terrorism. They further emphasised that no country should allow its territory to be used for terrorist and violent extremist activities.”
Modi and Trudeau also welcomed the agreement on a bilateral Framework for Cooperation on Countering Terrorism and Violent Extremism that was signed between the two countries.
The Framework recognised the urgent imperative to disrupt recruitment, terrorist movements and the flow of foreign terrorist fighters, address the threat posed by cross-border and state-sponsored terrorism, stop sources of terrorist financing, dismantle terrorist infrastructure and prevent the supply of arms to terrorists and counter violent extremism and radicalisation to violence.
The two sides emphasised the need to deny operating space to terrorist and violent extremist groups.
Under the Framework, both sides committed to further develop exchanges and facilitate effective cooperation in the fields of security, finance, justice, and law enforcement, including, where appropriate, at the operational level.
It consists of institutionalised cooperation between the National Security Council Secretariat of India and the office of Canada’s National Security and Intelligence Advisor, and regular exchanges and coordination between India and Canada, which will be guided by the joint National Security Advisors’ Dialogue.
The joint statement further said that to reaffirm the importance of lawful commerce and the freedom of navigation and over-flight throughout the Indo-Pacific region, in accordance with international law, including the rights and jurisdiction of states under UN Convention for Law of the Sea (Unclos), the two leaders supported bolstering regional connectivity through transparent development of infrastructure and use of responsible debt financing practices, while ensuring respect for sovereignty and territorial integrity, the rule of law and environment.
Modi and Trudeau also expressed “strong concern” over the prevailing security situation in Afghanistan and the recent political developments in the Maldives and their implications for free society.
On the economic side, both leaders agreed to realise the full potential of bilateral trade and investment and both sides will renew efforts to expand and diversify bilateral economic and commercial relations.
“They will also intensify negotiations to finalise a Comprehensive Economic Partnership Agreement and a Bilateral Foreign Investment Promotion and Protection Agreement,” the statement said. Modi and Trudeau also agreed to strengthen bilateral and international cooperation to address climate change and secure a clean energy future and committed to promoting the implementation of the Paris Agreement.
“The leaders welcomed the initiative to establish the (India-initiated) International Solar Alliance to promote renewable energy for sustainable development,” the statement said. “They urged research institutions and industry in both countries to collaborate to promote greater use of solar technology.”
It stated that the two leaders “underscored the importance of accelerating the global transition to affordable, reliable, sustainable and modern energy sources and acknowledged that renewable energy is a pathway to a low-carbon and more sustainable energy system”.
“Recognising the dynamic role of people-to-people ties in the India-Canada partnership, the leaders reaffirmed their commitment to address consular issues of mutual concern through discussion between the concerned officials,” the statement said. “They welcomed the expansion of direct air connectivity between Indian and Canadian cities.” IANS