Luxury goods market will reach PLN 13.3 billion in 2016 – KPMG

The number of wealthy Poles will reach 878,000 at the end of 2014 and they will have spent PLN 12.6 billion on luxury goods throughout 2014, 15 percent more than last year, according to a recent report by KPMG. In 2016 the number of High Net Worth Individuals will exceed 1 million and the market will grow to PLN 13.3 billion. In 2017, it will reach PLN 14 billion. The segments that will see the strongest growth are hotel and SPA services. As well as jewelery and watches. Currently, luxury and premium cars are the biggest part of the market, worth a total of PLN 5.6 billion. High-end clothes and accessories are worth PLN 2.2 billion, hotel services – PLN 1.3 billion, real estate – PLN 1.1 billion and furniture – PLN 600 million. In 2013, the number of wealthy individuals (people who fall into the third tax brackets or pay flat tax of 19 percent as entrepreneurs) stood at 832,000 and their annual income totaled PLN 134 billion. This year, the number has increased to 878,000 and their income to PLN 141 billion (both figures recorded 5 percent growth year-on-year). “We expect a growth trend because Poland’s middle and upper class is in the process of being formed. Companies need top managers and Poles are very entrepreneurial,” said Andrzej Marczak, partner at KPMG.