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.