Luxury Market ‘Rebounding’

Worldwide luxury goods sales will rise 10 percent in 2010,
Bain & Company announced at the annual Fondazione Altagamma conference,
marking the end of the “global crisis” in the sector. 

The consulting firm’s “Luxury Goods Worldwide Market Study”
projected that sales of “hard luxury” (including watches and jewelry) will grow
worldwide by 13 percent.

It also foresaw “a rebound of sales in the U.S., and
particularly strong sales of leather, shoes, and accessories.”

Bain’s analysis shows the luxury rebound in 2010 hinges
largely on the performance of retail stores owned and managed directly by
luxury brands. Sales in this channel increased 20 percent, compared to 6
percent increases in the department store and wholesale channels.

It noted luxury sales online are over-performing overall web
sales, and will grow at 20 percent in 2010, to 4.2 billion Euro.

Discount luxury outlet stores will grow to 8.2 billion Euro
in 2010, having grown an average of 12 percent each year since 2007.