By Stephen Eisenhammer
Luxury brands are set to grow further in 2013, as the sector continues to dodge the fallout from stalling European and U.S. economies by appealing to consumers in emerging markets such as Brazil, China and the Middle East.
The industry is set to grow 6-8 percent this year according to the Zurich-based asset management fund Swiss & Global, with 90 percent of that growth coming from consumers in emerging economies.
The global industry, which is estimated by luxury consultants Bain & Company to be worth more than $34 billion, has been a counter-intuitive success story of the past years of economic crisis and government austerity measures.
Swiss & Global said it expected luxury brand purchases in emerging economies, which already accounts for half of all sales, to increase further, driven by rising demand in China.
“Chinese luxury consumption, which nearly constitutes 30 percent of the market, is expected to continue to grow on average at a double-digit pace in the coming years,” the fund said in a note.