China Overtakes Japan to Become the Second Largest Market for Luxury Goods

The luxury goods market is back on track. China, of course was steaming ahead at a fast pace but the 2010 results show that the European and American markets have also recorded growth and are doing well this year as well. The total global sale of luxury goods in 2010 was around $250 billion which is higher than the global sales figures recorded prior to the global financial crisis. The final figure has exceeded the estimates made by Bain & Company in October 2010. They have recently released ‘Luxury Goods Worldwide Market Study’.

The projected growth for the luxury goods sale in 2011 is about 8% and is expected to reach $270 billion. The luxury goods consumption has been fully restored and will continue on the growth path this year. All the major luxury brands like LVMH, Burberry, PPR and TOD have all posted better-than-expected sales since the start of 2011. LVMH group with its large luxury brands portfolio has been recording a 17% growth in sales. Sales in all segments like fashion, leather goods, watches and jewelry are on the rise. Bain & Company has already revised its estimates upwards for the current year.

Another major finding of the study by Bain & Company is that China has overtaken Japan as the second largest consumer of luxury goods behind the United States. The Chinese people are travelling much more now and in 2010 they spent as much as 16 billion euros on duty-free luxury items in airports and on flights. The luxury goods sales in China grew by a phenomenal 30% in mainland China. It is going to sustain the momentum and grow by another 25% in the current year. Only Japan will be adversely affected because of the natural disaster and the sales there are expected to decline by about 5%. India is another growing market but their preference for traditional dress and handmade jewelry has made it tough for the international brands to make much headway.

Via: english.peopledaily

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