Luxury comes back with a vengeance

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PARIS - the Outlook for the luxury goods market has strengthened significantly improved in recent months by a rebound stronger than expected in the United States and Europe and rising demand in China, said the consultancy Bain & co.

Bain raised its 2011 growth forecast for luxury sales by 8 percent in constant currencies from a range of 3 to 5 percent, according to the latest sales data by groups such as LVMH, Burberry, PPR, and death's easy beat market expectations.

"The surprise was in the United States and Europe," said Claudia d ' Arpizio, a Bain partner in Milan and lead author of a study with Italian luxury trade body Altagamma carried out.

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Strong tourist flows in Europe coupled with a pickup truck were department stores in distribution through US to the recovery, Tuesday's report said.

Spooked by the financial crisis if their purse strings intensified customers in 2009, and 2010 was the year they began again solve, 2011 should return to normal luxury consumption, in line with historical trends were see.

"Luxury shame now about is", said d ' Arpizio, add that hesitate customers of less, pay full price.

Bain also said that it luxury sales rose by 8 percent last year in constant currencies, until a previous 6 percent estimate believes. Nominally increased the global luxury goods sales 12 percent last year against a previous 10 percent.

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Bain's results mean that global luxury is sales growth in the year 2011, as expected, despite Japan's earthquake and nuclear crisis and hard comparable basis 2010 a catch-up year for many luxury brands was not slow.

The advice would be appreciated that luxury sales volumes 5-6 per cent are buyer and elastic demand in Europe and the United States in 2012 and 2013, under the direction of emerging markets.

Move China up
But China, the largest luxury consumers five years were be top contribution to growth.

Buyers from the Mainland and greater China, if those are in the domestic and abroad, are already worldwide no. 2 luxury customers behind from the United States, Bain said.

People's Republic of China luxury sales rose by 30 percent in the year 2010 and are expected to grow 25 percent in constant currencies this year to 11.5 billion euro, while US luxury sales by 8 percent rise conditions to €52 billion in 2011 to 10% at constant exchange rates in 2010 to 48.1 billion grow set are, it said.

Were in Japan, the world's largest luxury buyers are and is now in third place behind mainland and greater China combined, will be expected to luxury 5 percent this year at constant exchange rates to €17 billion sales can be found under.

LVMH sales in Japan 9 percent fell in the first quarter and 25 percent in March alone, although Dior Chief Executive Sidney Toledano said last week that sales in Japan on the road to recovery...

D ' Arpizio favors Brazil on India as the next great source of growth to China, when home-made India of the lack of retail space and preference for traditional clothing and jewelry to penetrate it hard for the European brands.

"We see Brazil a major engine of growth goes to the front, but not the same size as China, of course", d ' Arpizio Reuters said in an interview.

Brazil luxury sales amounted to 1.8 billion in 2010 and 10-15 percent between 2010 and 2013 grow set are estimated Bain. In Russia Bain is percent of 4.8 billion euro in 2010, growing 5-10 by the year 2013.

The Middle Eastern market, 4.1 billion euros in the year 2010, will increase expected to be 10-12 percent over the same period of time.

Overall, Bain said global luxury sales were set were a record 185 billion this year compared to 172 billion in 2010 to reach euro.

In 2009, which was worst year for the industry, global luxury sales 8% at constant exchange rates and 11% nominally, with much of the decline in the United States and southern Europe focus.

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