Monday, 26 October 2009

Asian Luxury Sales Predicted To Rise, While Other Countries Drop – 26/10/09

There are some “glimmers of hope” on the horizon for the luxury industry, in the wake of last week’s Bain & Co. annual ‘Luxury Good Worldwide Market’ study.

Claudia D`Arpizio from Bain & Co. said, "Luxury has been down, but it’s not out. The world of luxury will see dramatic shifts in the decade ahead."

Bain & Co. predicts that 2009 sales will be down 16 percent in America, 10 percent in Japan and 8 percent in Europe versus 2008 levels. But 10 percent projected growth in Asia will partially dull the impact of those declines.

Online sales are also proving to be a growth area, with a roughly 20 percent increase worldwide, but this channel still accounts for less than 3 percent of total sales.

Other predictions included:
- Jewellery, watches and other hard luxury items will be hit hardest in 2009, with a forecast decline of 18 percent.
- Apparel sales will fall by 11 percent worldwide.
- Perfume and cosmetics are expected to drop by a more than anticipated 4 percent in 2009.
- Leather, shoes and accessories will hold the line with only a projected 1 percent decline.

To read more of the Bain & Co. predictions, click here to go to Reuters.

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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au