Middle East luxury market to grow by 15 percent
The Middle East’s luxury goods market is set to grow by 15 percent this year, leading a global uptick in the sector, a new report has said. Bain & Company’s study said global luxury goods sales are defying initial concerns over Eurozone turmoil and fears of a cool down in emerging markets. It predicted that the global market for top-end products would exceed €200bn in 2012 and that the Middle East luxury market would grow by 15 percent.
Bain also said it expects an average of 7-9 percent annual increases in global sales to fuel luxury brands’ growth aspirations until the middle of the decade. It added that a growth of online sales, rapid expansion in China, and shift from wholesale to direct-owned retail were key drivers of the growth in the sector. Bain’s study said that growth for Europe this year would range between 2-4 percent in Europe, the Americas would see growth of 5-7 percent while China’s growth of 18-20 percent will rival that of India and Russia. It added that new markets for luxury goods growth included Azerbaijan, Brazil, Indonesia, Kazakhstan, Malaysia, Mexico, South Africa, Turkey and Vietnam.