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Luxury goods market is braced for a slowdown
GROWTH in the global luxury goods market is set to slump by more than half this year as Chinese shoppers cut back on spending and tough economic conditions take their toll on consumers in the Eurozone.
A report by business consultancy Bain and the Italian luxury goods trade body Altagamma yesterday predicted that sales will grow by just five per cent to €212bn (£170bn) at constant exchange rates compared with 13 per cent in 2011.
Sales in China will grow by eight per cent in 2012, the study claims, down from 30 per cent last year at constant currencies.
Sales growth in Europe – hit by the ongoing sovereign debt crisis – it set to slow to five per cent, down from nine per cent.