Because of the shrinking Japanese economy brought about the global financial crisis, the Japanese are now beginning to feel the pinch and are making some drastic changes in their lifestyle — namely, scrimping up on luxury brands.
Japan’s economy has shrunk by 5.7 percent this year and because of this spending on luxury items in the country is likely to drop to 14 percent or $28. billion from a high of $22 billion in 2005 and 2006.
The Japanese are very brand conscious and most of the top-tier designer brands in the world have flagship stores in Japan. But because of the belt tightening measures that everybody seems to be doing, the Japanese are doing it to. They’re probably not using Gucci belts for their own belt tightening.
Analysts think that this downtrend will continue for a couple more years, which now means the Japanese will have to forego their Chanels and Vuittons for a few more years. This at a time when the comfort women issue is being hotly debated between the Japanese and Korean governments.