After a 10 percent increase in 2010, growth in the global luxury sector will slow to a 4 - 5 percent gain, according to a report released Monday.
By the end of the year global luxury sales will reach $235 billion, according to the report by Boston-based consultancy Bain & Co. along with Milan-based luxury trade body Altagamma. In 2011, sales should rise to $246 billion.
The projected drop in the growth rate is due partly because of this year’s stronger than expected increase in luxury sales along with the continued weakening of the dollar against the euro and other currencies that will limit U.S. consumers ability to spend overseas, according to published reports.
China leads in luxury sales growth at 30 percent and is set to become the world’s third biggest luxury market in five years, according to Bain.
The U.S. grew by a surprising 12 percent in 2010, according to the report, while the recovery in Europe was slower at 6 percent. Only Japan continued to contract, with a 1 percent fall in sales.
U.S. growth is expected to slow in 2011 while Japan will begin to recover, according to the report, which was released during an event in Milan.
Women remain the biggest luxury buyers, making up 61 percent of the total luxury consumer base compared with 39 percent for men, the report said.