Financial Times
In the Financial Times, BCG’s Sarah Willersdorf explains why luxury brands are expanding into so-called second- and third-tier cities. While some attribute this trend to pandemic-induced spending shifts, she asserts that it was well under way prior to 2020—especially in India and China. Due to the rising affluence of certain cities in those markets, as well as social media’s influence, luxury brands have found homes in new spending hubs. These cities “have played a crucial role in driving the luxury market’s growth, contributing significantly to the sales volume of luxury brands,” notes Willersdorff.