Luxury sector may hit recession

Published: 31-Oct-2008

The world market in luxury products may well experience its first recession in six years in 2009 after a slowdown this year, according to a study by the Bain and Co consultancy for the Italian luxury goods companies' organisation Altagamma.


The world market in luxury products may well experience its first recession in six years in 2009 after a slowdown this year, according to a study by the Bain and Co consultancy for the Italian luxury goods companies' organisation Altagamma.

Bain said the impact of the financial crisis would put some segments of the market into recession and the duration of the recession would depend in part on the way companies reacted.

European market growth is expected to slow to 5% in 2008 after 10% the previous year while the US market, accounting for 33% of world sales, is expected to remain stable. The Asia Pacific region (12% of the world market) is likely to register growth of 15% this year after a 14% expansion in 2007. Japan (12%) is set to reflect the worst effects of the crisis with a downturn of 7% this year after the 2007 decline of 2%.

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