According to a recent study conducted by Bain and Company, the global luxury goods market is set to slow to 4-6% growth by 2015. The below article was written by and published in issue 831 of Cosmetics International. www.cosmeticsbusiness.com
The global luxury goods market shower double digit growth in 2012 but is set to slow to 4-6% by 2015, according to consultant Bain and Company in its Luxury Goods Worldwide Market Study, conducted in collaboration with Italian luxury trade body Altagamma.
The worldwide luxury goods market now tops $200bn, and is on track to break the $250bn barrier by 2015.
According to Bain, key growth drivers are to include tourists, who are changing their consumption habits, seeking out new destinations such as Dubai, Southeast Asia and Australia and are much more informed about the items they purchase.
The sector will also be driven by increasing numbers of ‘HENRY’s’ (High Earnings, Not Rich Yet), who outnumber ultra affluent individuals by ten to one.
Leather goods and other accessories are tipped to continue growing faster than other categories. And cosmetics, although slowing down in mature markets, is expected to continue growing in emerging markets.
In terms of regions, growth in Europe is expected to remain sluggish at 0-2%. Growth in China is also expected to stabilise to an expected 7%, while Southeast Asia is set to experience growth of 20%.
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