The luxury goods market is predicted to grow 4 to 5 percent globally in 2013 and 5 to 6 percent on a yearly average through 2015, according to consultancy Bain & Co. This represents a slowdown compared with the past three years, when luxury goods showed annual double-digit growth, reports Women’s Wear Daily.
This year will be negatively impacted by the fluctuation of exchange rates, said Claudia D’Arpizio, partner at Bain & Co., in a presentation of findings from the the firm's “Luxury Goods Worldwide Market Study.”
Bain confirmed that luxury revenues gained 10 percent in 2012, reaching 212 billion euros, or $271 billion at average exchange, boosted by “strong growth tailwinds” in the first half of the year. At current exchange, revenues would have grown 5 percent.
“The U.S. is rediscovering luxury, while Europe is struggling,” said D’Arpizio.
Southeast Asia and South America claim top spots as growth leaders while China’s rise of the luxury sector will keep pace with growth in its gross domestic product.
Bain identified tourists and “HENRYs” (High Earnings, Not Rich Yet) as key drivers for growth, as well as the rise of the middle class in emerging countries.
Despite some recovery of spending on apparel, the main drivers remain leather goods and other accessories, while watch consumption has dropped sharply as retailers de-stock and Chinese luxury consumers slow their purchases, reported WWD.
In 2013, Bain said the impact of a 12 percent sales growth in Central and South America, in particular in Brazil and Mexico, will result in a 5 to 7 percent gain in the Americas. “High consumer confidence among the affluent, increased store openings in American cities, and intensive investments in linking physical and digital shopping are all fueling U.S. sales growth,” said D’Arpizio.