Luxury market slowly emerging from global recession
Although the sales in the luxury industry are bouncing back in 2010 after the global recession, the luxury goods market should not be too optimistic about the future...
After undergoing a huge drop in sales of around eight percent in 2009, the luxury industry estimates a growth in sales of around ten percent by the end of the year 2010. Nevertheless, this expansion will not continue to rise, due to two big problems.
On the one hand, the luxury market will have to deal with more cautious consumers, who have realised they are vulnerable, certainly in hard economic times.
On the other hand, they will be facing another, more important problem, due to changing demographics. Studies in the luxury industry have shown that mainly people between the age of 35 and 55 buy luxury goods. However, this baby-boom generation is entering retirement and as a result, sales of luxury goods will not be growing significantly in the next decade.
As a conclusion, we can say that the luxury industry will be facing a hard slog in the next ten years, although the global recession is already behind us.
Nicholas Vijverman
http://economictimes.indiatimes.com/news/international-business/Luxury-market-slowly-emerging-from-global-recession/articleshow/5992623.cms
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