Luxury sales to surpass 234 billion euros in 2013
In its 2014 edition of Passport: Luxury Goods report, Euromonitor International reveals luxury goods sales for 2013 will exceed US$318 billion worldwide, representing a year-on-year real value gain of 3 percent, driven by emerging markets and ‘affordable luxury’ brands. In its report, Euromonitor has compiled data from 32 countries on nine luxury product categories, including fashion, accessories and jewelry.
Despite continued macroeconomic uncertainty and sluggish profit reports from major luxury brands, Euromonitor remains optimistic about the industry’s growth prospects. According to the report, spending is likely to increase by more than 35 percent over the next five years, with Asia Pacific expected to become the world’s largest luxury market.
In 2012, Mexico overtook Brazil to become Latin America’s biggest luxury goods market. With a total GDP of US$1.2 trillion in 2012, Mexico is the world’s fifth-largest emerging economy behind the BRIC countries (Brazil, Russia, India and China) and the second-largest in Latin America.
The Euromonitor report also highlights that “affordable luxury” brands, such as Michael Kors or Coach, have also made gains in both established and emerging markets.