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China bucks recession in luxury race

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According to a recent study released by Bain & Company, one of the leading firms worldwide, the global market will experience a 10 percent increase in the luxury goods sales this year, but India will remain behind in the race.
The Global Luxury Goods Study by Bain, states, “India, while nearly equalling China in the billion-plus headcount, is still far behind in the luxury race. With a e9.2 billion market size, China decisively bucked the worldwide recessive trend with year-on-year growth ratio.”
Bain links the luxury market rebound in 2010 — and a projected 3 to 5 percent growth in 2011 — not only to China and a revival in the US, but also to the 20 percent spurt in sales at direct-owned stores, and strong demand for leather, shoes and accessories. In fact, accessories are now nearly on par with apparel. The new factor in the Bain report is the focus on the male customer. It points out that many ‘female brands’ are entering the male luxury market, there are more stores opening dedicated to men accompanied by targeted communication campaigns.
, lead author of the Bain report, was quoted as saying, “The luxury shopper of this decade is more likely to be Chinese, more likely to be male, and more likely to be young. Brands that meet the needs of these new segments will be in the best position to keep growing in a new decade.”

Posted on: 27.10.2010
Source: www.economictimes.com