Luxury is back on fashion as predicted in a May report by Bain & Company. The document advanced that global luxury goods sales would increase 8 percent in 2011 in part because of renewed demand in the U.S., where department store sales are increasing and Europe, where tourism is strong (Bain expected the large Japanese luxury goods markets to recover soon from the effects of its recent earthquake).
Also, a Northeastern American University report showed earlier this year, many affluent Americans sidestepped the recent recession and, according to David Arnold, publisher of the luxury magazine Robb Report, the wealthy are no longer as embarrassed about flaunting their wealth as they were in 2009.
The Bain report also cited continuing growth in emerging markets like China, Russia, Brazil, and the Middle East. The Chinese market “skews very young (the average Chinese luxury consumer is around 30, whereas the average western luxury consumer is around 55),” the paper explains. “Thus, what happens there often affects what will happen in older (i.e. European and American) markets later.”