Altagamma report says luxury goods continue to grow in 20114 May 2011
Luxury goods sales are expected to rise 8% in 2011 to €185 billion, as shoppers in fast-growing markets like China and Russia quench their appetite for high-end handbags and clothes, a Bain & Company study released on May 3. Leather products are some of those highlighted in the report.
The study, which was presented by Italian luxury association Fondazione Altagamma, said that growth in 2011 is expected to be slower than the 12% rise experienced in 2010 to €172 billion. In 2010, the luxury industry rebounded from 2009, the year Altagamma refers to as the ‘annus horribilus.’
Worldwide, the luxury goods market's average annual growth rate is seen at about 5-6% between 2011 to 2014.
In a separate study, Altagamma said that by sector, leather goods, shoes and accessories are expected lead gains, rising 12.5% in 2011, followed by the jewelry and watches sector, which is expected to rise 11.5%.
On the whole, the luxury sector's earnings before interest, taxes, depreciation and amortization, or Ebitda, should rise 13% in 2011 compared to a year earlier, Altagamma said.