Growth of global luxury retailing to double over next five years: Verdict Research
05 October 2007
Leading authority on retailing, Verdict Research, wholly owned subsidiary of leading market research firm, Datamonitor plc, forecasts in a new report that global expenditure on luxury branded products will hit $450 billion by 2012 as the rate of growth doubles.
This report, Global Luxury Retailing 2007, focuses on the retailing of luxury, high-end non-food products, in particular branded clothing, accessories, jewellery, watches, fragrance and cosmetics distributed by luxury retail brands that have a strong global presence. The term "market" denotes consumer expenditure on these goods.
As wealth increases across the globe, the demand for luxury products will accelerate with the market, currently worth $263 billion, boosted by high demand from emerging economies, wider demand from mature markets and new channels.
Global expenditure will grow by 71 per cent over the next five years. In its latest report, Global Luxury Retailing 2007, Verdict predicts the global market for those typical luxury goods bought through retailers (fashion / clothing, accessories, watches and jewellery, fragrance and cosmetics and homeware), will more than double in growth over the next five years as consumers in emerging markets become wealthier, and luxury brands stimulate higher spend from consumers in mature markets.
Growth of 71 per cent between 2007 and 2012 will be more than double the 30.7 per cent growth in consumer expenditure on luxury branded products over the past five years.
Richer consumers in fast growing economies will account for the greatest growth.