A survey by Bain & Company indicates that good times are here again for luxury markets. According to the survey, the global luxury market in 2010 was worth 172 billion Euros ($254 billion), up from 153 billion Euros in 2009. With the new figures, the luxury goods market has returned to pre-recession levels. The last time the market had enjoyed such figures was back in 2007 in fashion sales when it touched 170 billion Euroes. Bain is predicting that the luxury goods market will continue to do good business in 2011. If their predictions are correct, the luxury market could jump to 185 billion Euros this year.
According to the Bain & Company survey, which was released by an association of Italian producers, the biggest growth in the luxury sector in 2010 was seen in watches and jewelry. If you remember correctly, hard luxury items such as these had been the worst affected during the recession. Thus, luxury watch and jewelry sales jumped by 21 percent in 2010. Accessories managed to record growth of 17 percent and apparel came in with 10 percent.
Since the 11 March earthquake in Japan, there have been fears that the Japanese luxury sector would suffer. Japan is the second largest market and is worth 18 billion Euros. Luxury goods stores in Japan were shut for 10 days following the earthquake and reconstruction will push up costs. However, a long-term impact seems unlikely.
Meanwhile, luxury brands will be eyeing the Chinese markets. Only last year Chinese customers were responsible for luxury sales worth 9.2 billion Euros. The country is expected to become the third largest luxury items market within five years. Things are looking good in the luxury world.
Via: The Associated Press