Middle East luxury market to grow by 15 percent

Prada store at Mall of The Emirates, Dubai

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.