Unprecedentedly high levels of demand
The luxury goods market is experiencing unprecedentedly high levels of demand, notably from China, Brazil and the Near East, according to a report from the Munich-based Bain consultancy.
Sales of cosmetics, perfumes, jewellery, leatherware and textiles rose by 10% last year to around €19bn. The report adds that even if some steam goes out of the world economy in 2012, this is not expected to have a serious impact on the luxury products segment.
Bain estimates that average annual growth will turn out at between 6% and 7% in the period to 2014 compared with 2% in 2008 and 8% in 2009.
One of the surprises in the current year is that the Japanese market has been showing signs of modest recovery despite the economic effect of the earthquake and tsunami in March. More generally, Asia remains the second most important market after the US. Growth in Europe overall this year is forecast at about 7% and in America 8% compared with sales growth in China of 35%, Brazil 20% and the Near East 12%.