According to Euromonitor’s most recent research on global luxury markets, 2012 has shown another solid’s year performance in store, despite persistent economic instability, increasing issues in the Eurozone and an on-going political instability in various emerging markets. The overall retail growth in 2012 had been driven mostly by the strength in these same emerging economies. In fact, in 2012 there has been more growth in retail that in 2011, with luxury goods sales expecting to exceed US$302 billion worldwide. This is equivalent to a year-on-year real value gain of greater than 4% on 2011.
Indeed those spending the most on personal luxury continue to be developed countries- US, Japan, Italy and France make up for half the value of 2012 sales. The world’s largest luxury goods market is still the US, accountable for over a quarter of the overall value sales of luxury goods in the current year. On a different note, the UK luxury good industry is at risk with inflation rising and wages stagnating.
The up and coming BRIC countries represent 11% of total luxury sales, a retail value of over US$33 billion. Back in 2004, this figure was as small as 4%. The retail value of the BRICs is expected to show significant growth (increasing up to 78% in real value terms).
What’s more, designer apparel – being the largest luxury good category by value in 2012- is expected to remain as such and even expand to a noteworthy 42% of total luxury revenues in the next five years. Considering emerging economies such as China and India, Asia Pacific countries will play an important role in value sales of luxury jewelry and watches over the following years. The value sales are expected to grow by an astounding 207% in the short period of 2012 to 2017. Although Asia is expected to be the most attractive market for future luxury goods sales growth, in the present the US continues to be the biggest luxury market worldwide.