No crisis in luxury goods market. - In this period of economic crisis, the luxury goods sector has never felt better, according to the annual Bain & Company Luxury Goods Worldwide Market Study. Statistics for 2011 confirm an infatuation with luxury goods, particularly in Asia. Last year's market turnover reached a figure of €191 billion, a 10% leap following 13% growth in 2010. The wait-and-see attitude created by the financial crisis has come to an end and has generated a spectacular rebound in purchasing goods in this market. The increase in 2011 is mainly due to constant growth in demand in the Asia-Pacific region, which grew by 25% in 2011 and by 29% in the Greater China area (China, Hong Kong, Macao and Taiwan). In comparison, US and European demand grew by 8 and 7% respectively. The Japanese market experienced a more moderate 2% rate of growth, although there had been fears that there would be a fall in the market. This growth is due to the weak level of the euro compared to the yen. According to Bain & Company, in 2011, the Chinese spent more than €35 billion on luxury products, with €23.5 billion spent on the domestic market and between €12-15 billion externally. The Chinese alone now account for 20% of global consumption in this market, a percentage that is unlikely to fall in 2012, despite attempts by the government to contain this attraction for luxury goods by imposing advertising restrictions. There are now more than 2.7 million people in China that own wealth that is worth more than €720,000, and 63,500 people in China own wealth that is worth more than €12 million, according to figures published in the China Luxury Consumer White Paper 2012. These millionaires are young (an average age of 41) and they have a big appetite for luxury goods. They purchase a lot, of everything, mainly abroad: especially watches (65% of them), accessories and clothes (49%), leather goods (48%), jewellery (45%) and cosmetics (43%). The Chinese are not the only ones to love luxury. This is also the case with the Russians and Brazilians who are pouncing on perfumes and cosmetics abroad but which are subject to very high custom duties in their own countries. Over the next two years, the luxury goods industry is expected to develop a certain customer loyalty base. Until now, growth on the Chinese market has been fuelled by the opening up of new luxury goods shops but this market is beginning to become saturated. Elsewhere, luxury brands are unlikely to ignore the US and European markets, which in 2011 accounted for 66% of the global market. According to Bain & Company, the US market could become more attractive again, with even more high potential market segments that have not yet been fully exploited. In 2012, Bain & Company is forecasting yet another excellent year for luxury goods and a 10% rise in this market, which will bring its value up to €200 billion. In 2014, this figure could reach €230 billion. - Figures for a few major luxury brand groups in 2011 - In the first quarter of 2011, the international number one on the luxury goods market was LVMH (Louis Vuitton, Dior, Dom Perignon). This group saw its sales rise by 13%, which enabled it to break the €10 billion threshold over a period of six months. In the third quarter, sales climbed by 17.6%. The group is continuing to maintain this excellent momentum achieved in 2012 and achieved 14% growth over the first three months of the year. PPR (Yves Saint Laurent, Gucci, Balenciaga) achieved almost the same performance and a level of growth of 17.8% in the first quarter of 2012 (+33% for Yves Saint Laurent alone). The South African group Richemont (Cartier, Montblanc, Lancel) grew by 29% between April and August 2011. Hermès, easily doubled its takings compared to figures for 2005 and was even faced with the prospect of stocks running out due to the huge demand for its products. This brand achieved a 21.5% increase in its turnover for the first half of 2011, due to strong demand in the US. Prada saw its sales increase by 74% in the first half of 2011. Armani and Burberry are also doing tremendously well. In the car sector, Porsche announced that its sales had increased by a third in the first few months of 2012. Audi and BMW are now running neck and neck to establish which company has achieved the highest sales of luxury motorcars. (IL/trans/fl)