UK Luxury market to grow by 57%

According to ‘The UK Luxury Benchmark Report’ by Ledbury Research for Walpole, the UK luxury sector is forecast to grow in value by 57 per cent over the next five years, from £6 billion to £9.4bn. Retail group Verdict Research forecasts the global market

for luxury goods will increase by £37bn to £107bn by 2015.        

Much of this growth has been put down to the popularity of luxury brands in emerging markets such as China and the Middle East. Demand among the burgeoning Chinese middle class has been a particular driver of demand, according to Walpole. Of the brands polled by Ledbury, 41 per cent said they were already operating in the so-called "rising dragon" country while a further 34 per cent are hoping to break into that market this year.

In fashion, British brands have experienced astonishing demand, with sales at Burberry increasing 35 per cent in the year to 31 March and lifting the quintessentially British label to outsmart the market valuation of the London Stock Exchange. Meanwhile, handbag maker Hermes is bigger than French bank Societe Generale and profits at Mulberry quadrupled during the last
financial year to £23.3m.               

Early this week, Walpole, the exclusive membership organization representing Britain's most luxurious brands, organized an event where well known guests including Ian Rankin, Annie Lennox, James Walker of Walkers shortbread and Adam & Co chief Graham chatted about the success premium firms have experienced since the end of the recession.               

Angela González-Rodríguez