10/16/2012

Looking at the Luxury Market


Business Insider posted on a Bain and Company annual report on the luxury.  While it is not overly optimistic or pessimistic, the expectations are for a cooling in the luxury goods sector.

Expectations of growth are slowing, with only 10% growth rate in 2012, down from 11% growth in 2011.  Also the growth of the Chinese luxury market is slowing, with an increase of only 20% this year compared to 30% last year.

BI reports
Bain & Co. released its major annual report on the global luxury goods market yesterday, and it appears there are some big shifts afoot as the market slows down.

The consulting firm expects the global luxury goods market to grow by 10 percent in 2012, to $276 billion in revenues, compared to the 11 percent it grew the previous year.

And while greater China accounted for nearly half of all luxury spending in Asian markets, the first signs of a deceleration were evident. Bain projected that the luxury goods market in China would rise 20 percent (in constant currencies) in 2012, compared to 30 percent growth last year.

For the first time this year, luxury accessories made up the largest market share: sales of leather goods and shoes combined were up 14 percent. And tourism has become a major factor in the market: tourists now account for 40 percent of all luxury spending.
Source: The Business Insider 

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