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By
AFP
Published
May 7, 2012
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Luxury goods market to grow 7% in 2012

By
AFP
Published
May 7, 2012

MILAN - The global luxury market is forecast to grow by up to seven percent in 2012 despite the financial crisis, as China continues to drive consumption, a study by an Italian foundation released on Monday showed.

Sales will exceed the 200 billion euro ($260 billion) mark but growth is forecast to fall short of the 10 percent seen in 2011, due largely to slowdowns in consumption in Italy and Spain, the Altagamma Foundation said.

"The market outlook is very positive despite socio-economic turmoil: with an expected growth around six to seven percent at constant exchange rates, the luxury market will exceed the record of 200 billion euros" in 2012, it said.

"China continues to drive growth", with forecasts predicting an 18 to 22 percent boom, while India, "the eternal promise of the luxury market, finally shows a growth acceleration" of between 15 and 20 percent.

"Apart from Spain, Italy and Japan, high-end goods markets are growing significantly across the world," said Armando Branchini, secretary general at Altagamma Foundation, which monitors luxury markets worldwide.

On average, the luxury market is expected to grow between five and seven percent in the Americas, between two and four percent in Europe and between zero and two percent in Japan, the report compiled by Bain&Company said.

Leather accessories, jewels and watches are the most dynamic markets.

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