China’s expanding middle class and their love for luxury products are expected to drive the mainland’s consumption of high-end goods by 18 to 22 percent this year, results of a study conducted by the Altagamma Foundation revealed.
Jewellery, watches and leather accessories are the most vibrant sectors in the global luxury goods industry, the Italy-based foundation was cited as saying in a NineMSNreport.
Overall, the luxury goods sector is predicted to register growth of up to 7 percent this year in spite of a sluggish European economy.
"The market outlook is very positive despite socio-economic turmoil: with an expected growth around 6 to 7 percent at constant exchange rates, the luxury market will exceed the record of 200 billion euros" (approximately $258 billion) in 2012, the foundation was quoted as saying.
In addition to China, India is also forecast to increase its luxury goods spending by 15 to 20 percent in 2012, it added.
Premium luxury brands have set up retail points in China, such as Meng Zhi Dao Department Store in Guangxi