LVMH is one of the top performing luxury brands this year
Luxury market in recovery
Posted November 01, 2010 | By Sonia Nair
Worldwide watch and jewellery sales are forecast to increase by 4 per cent this year, according to a new luxury goods report.
The Luxury Goods Worldwide Market Study, by global consulting firm Bain & Company, projected a 10 per cent increase in total luxury goods sales for the Asia Pacific region (excluding China).
The Asia Pacific territory, which includes Australia, is set to experience the highest global growth after China, which is expected to record a 15 per cent increase.
According to the study, luxury retail store sales have grown between 15 and 20 per cent in the past year. As previously reported by Jeweller , luxury retail stores such as LMVH has recorded strong sales figures in the past year.
The increasing importance of retail over wholesale and the growing prominence of the online channel were cited as contributing factors to the growth.
Asia was highlighted as a key market and Bain’s study foresaw Western markets such as Europe and America being significantly boosted by Asian customers spending heavily abroad.
International passenger traffic increased by 4.5 per cent from 2009 to 2010, suggesting a partial recovery in consumer attitudes around the world.
2009 was the worst year for the luxury market, with an 8 per cent decrease in global sales. This year’s positive projection is said to be a result of improvement in economic growth of all countries except Japan, which was the only area to record a loss in total sales of luxury goods.
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