Demand for global luxury goods up in 2013

Global management company Bain & Company has stated the sale of luxury goods will increase by 6 percent this year. In a report Bain said worldwide sales of personal luxury goods would rise 6 percent at constant exchange rates in 2013,

higher than the 5 percent rise seen in 2012. The growth rate would be 2 percent at current exchange rates, due to the strength of the euro against the US dollar and the Japanese yen.

The worldwide market in luxury goods is set to be worth 217 billion euros in 2013, Bain research presented in Milan with Italian industry association Altagamma said.

According to the report the Americas are beating the Chinese domestic market even though Chinese shoppers worldwide represent 29 percent of luxury consumers in 2013, Bain said.

Key emerging markets include Malaysia and Indonesia

Countries such as Malaysia and Indonesia are now the main growth drivers in Asia, with sales up 11 percent on the year.

However, the strong euro is "totally negative for a large number of companies in the sector as their consolidated balance sheet is in euro," Bain analyst Claudia D'Arpizio said.

The picture is different from last year, when currency fluctuations boosted overall growth.

The yen is expected to be down around 20 percent against the euro by year-end, according to Bain. The Japanese have started to buy more at home at lower prices and less during their travels, particularly in expensive European countries, said Bain's D'Arpizio.

The dollar also has weakened against the euro, and is expected to reach a 3 percent decline by year-end, Bain said.

Luxury goods sales have performed well in the US this year, thanks to regained consumer confidence, which could partially offset the currency impact.

Image: Louis Vuitton S/S '13