Downturn fails to dent demand for luxury goods

THE appetite for luxury goods shows no sign of waning despite the economic downturn, according to the latest research.

Growth in demand for top-of-the-range brands is outstripping previous forecasts, regardless of the sovereign debt crises that have unfolded on both sides of the Atlantic.

Sales are expected to rise 13 per cent this year, against a previous forecast of 8 per cent, says consultancy firm Bain & Co.

As well as continuing demand from China and Latin America, there has been a resurgence in buying from Europe and the United States.

The firm said the effect of the Japanese earthquake and ensuing tsunami had not been as bad as had been first feared. Jewellery and watches are currently the fast-growing sectors, followed by accessories such as handbags.

Italian luxury goods trade body Altagamma, which commissioned the research, said: “All markets are forecast to grow steadily in 2012.”

A host of British firms have benefited also, with fashion house Burberry last week bucking the economic gloom by posting a double-digit sales growth in the first-half of its current financial year.

Scotch whisky producers have also been cashing in on demand from emerging markets in Asia and South America and have been producing higher-priced, one-off bottlings.