Despite a slowing economy, the growth of global luxury goods will maintain its momentum at 10 percent annually, driven by middle-class Chinese consumers, Shanghai Daily reported
based on Dipped in Gold 2012
annual report by investment group CLSA.
Following the 14 percent growth of the global luxury goods market in 2011, the boom in emerging markets is expected to boost the total market value of luxury goods to $340 billion by 2014, the report stated.
According to the annual report, jewellery companies saw the strongest performance, with Hong Kong-based Chow Tai Fook posting a solid year-on-year sales increase of 79 percent between April and September in 2011. Mainland Chinese consumers contributed to most of its business, the report found.
The purchasing power of the middle class in emerging markets may account for 73 percent of global luxury purchases by 2020, the CLSA report said. BRIC nations (Brazil, Russia, India and China) in particular will have more than 1 billion middle-class consumers from 378 million people in five years. China’s middle class will account for nearly 50 percent of its population by 2015, up from 27 percent in 2010.
"We can see that luxury goods market growth has become more correlated to emerging-market growth," said Aaron Fischer, author of the report. "Consumers in these countries today account for around half of global luxury-goods sales."
Despite slight setback in the first quarter results of luxury brands, the global market will expand by 10 percent to $280 billion in 2012, the report said. Demand for luxury goods in China will rise by 24 percent, compared with the 39 percent growth last year, it added.
Hong Kong-based Chow Tai Fook has more than 1,500 retail branches covering 320 cities in China
Photo credit: Chow Tai Fook Co Ltd