Altagamma Bain Luxury Market Monitor 2011

The 2011 Altagamma Worldwide Luxury Market Monitor reveals a strong recovery in the personal luxury goods market in 2010-2011, following the 2009 economic crisis. The market rebounded with double-digit growth rates, driven by rising consumer confidence and a resurgence in China’s demand. Exchange rate fluctuations had varying impacts in 2010 and 2011, but the overall trend remained positive. The luxury market’s future, despite socio-economic uncertainties, looks promising for 2012, with growth anticipated from emerging markets, particularly China and Latin America. Europe’s consumption patterns remain uncertain, but retail continues to be a crucial sector, with hard luxury and accessories expected to lead the growth.

Core findings:

Significant Recovery Post-Crisis (2010-2011): The personal luxury goods market experienced phenomenal growth in 2010 and 2011 following the 2009 economic downturn. This recovery was marked by increased consumer confidence and channel and wardrobe restocking.

China as a Major Growth Driver: China played a pivotal role in driving market growth during this period, signaling a shift in the luxury market’s geographic focus.

Impact of Exchange Rates: Exchange rate fluctuations significantly impacted market trends in 2010 and 2011, influencing growth rates in different ways across these years.

Positive Market Outlook for 2012: Despite socio-economic challenges, the luxury market was expected to continue growing in 2012, driven by emerging markets, especially China, Latin America (notably Brazil and Mexico), and Asia Pacific regions.

Sector Performance: Hard luxury and accessories sectors were outperforming other categories, indicating a shift in consumer preferences within the luxury market.

Source: Altagamma Bain