Content area
Full Text
Buoyed by a projected 12% year-over-year increase in sales in 2009 in mainland China and 20% growth of sales online, the decline for the worldwide luxury goods industry will be less than expected in 2009 and poised for 1% overall positive sales growth in 2010; this is according to findings from the 8th edition of Bain & Company's annual 'Luxury Goods Worldwide Market' study. Sales for 2009 are projected to decline by 8% to 153 billion worldwide at current exchange rates, a 20% downward revision versus the 10% year-over-year decline forecasted in April. The authors find, however, that a full recovery will not occur until 2011 when the industry is expected to grow by 4.2% for the full year. Results of the study were presented at Altagamma's 2009 Osservatorio conference by Claudia D'Arpizio, a Milan-based Bain & Company partner and widely-recognized global luxury goods industry expert.
"Luxury goods markets are stabilizing," said Ms. D'Arpizio. "We are seeing less discounting and mark-downs and more signs of increasing consumer confidence. Growth will be timid in 2010 but it's showing movement in the right direction."
Luxury sales in mature markets show continued softness. Bain predicts that 2009 sales will be down 16% in America, 10% in Japan and 8% in Europe versus 2008 levels. But 10% projected sales growth for luxury goods overall in Asia will partially dull the...