A new report from Bain & Co. reports that thanks to U.S. shoppers and the surge of demand in China, the global luxury market is now projected to jump 10% in 2010, almost reaching the peak levels
achieved in 2007. Bain attributes the gains to a rapid return of consumers to brands' direct-owned stores; continued strong growth in China; a rebound of sales in the U.S., and overall strength in the
leather, shoes, and accessories markets.
The company says the final quarter of 2009 put an end to a six-quarter-long decline in year-over-year luxury sales. In 2010, luxury sales rose 6% in
the first quarter, 16% in the second, 13% in the third, and are projected to grow an additional 5% in the fourth quarter. Bain predicts growth of 3% to 5% in 2011.