Slow recovery expected for luxury market
According to a recent study conducted by management consulting firm Bain & Co, it will take several years for the luxury market to recover from the global economic slowdown, with a full recovery expected to take place in 2011-12. Growth of just 1% is predicted for the luxury market in 2010.
Bain & Co believes the sector’s global value will be around €153 billion ($304 billion) in 2009 compared with €167 billion in 2008. Leathergoods sales are expected to fall 4% to €18 billion, with shoes sales falling 0.5% to €7.8 billion, with
Interestingly, the firm expects online sales of global luxury goods to rise 20% to €3.6 billion this year. "It is much more private," Bain partner and luxury goods expert Claudia D'Arpizio said. "You just click. There isn't all the ceremony of paying for the item and making the sale at the cash register."
Geographically, luxury sales in America have been hardest hit, with sales expected to fall 16% this year. European sales are set to fall 8% and Japanese sales are expected to fall 10%. On the plus side, the company expects Asia Pacific sales, excluding Japan to grow 10%, driven by a 12% rise in China.
