World sales of personal luxury goods are set to grow by a stronger- than-expected 2-4 percent, with Europe championing this global growth, a study by consultancy group Bain & Co showed. Nathalie Kantaris Diaz reports.
After a slump due to terror fears in Europe, global sales of luxury goods are on the up. They're expected to rise 2-4 percent this year, according to Bain consultancy. That's thanks to Europe, where sales are up 7-9 percent. Greater spending in Europe and China on items like watches, jewelry, clothes and shoes is making up for weakness in the U.S. and Southeast Asia. (SOUNDBITE) (English) EMEA DIRECTOR OF LUXURY GOODS AND DISTRIBUTION CENTRE AT BAIN & COMPANY, MARC-ANDRE KAMEL, SAYING: "Europe is definitely the champion of this renewed growth. It seems that the impact of terrorism has faded a little bit, tourists are back, Spain is taking advantage of this the most, but also the post-Brexit UK thanks to the devaluation of the pound is also taking advantage of that. Now everywhere, the local consumers are also regaining confidence and you see that in the sales of luxury brands." Growth recovery in mainland China has also boosted the luxury industry. Many high-end Paris stores have launched services catering specifically to Asian tourists. At present, Chinese buyers represent a quarter of luxury consumption, and that could rise to 35 percent within eight years. (SOUNDBITE) (English) EMEA DIRECTOR OF LUXURY GOODS AND DISTRIBUTION CENTRE AT BAIN & COMPANY, MARC-ANDRE KAMEL, SAYING: "There will be more appetite for luxury products everywhere in the world, so we're really very positive. Now, this being said, brands will have to double down to make sure that they are amongst the winners in their industry. We believe that there will be more and more polarisation between the winners and the losers in this market." Global luxury brands also remain popular with the so-called "Millenials" - this young market is set to make up nearly half of of overall consumption by 2025.