Picture: Reuters

According to Bain & Company’s recently released “Luxury Goods Worldwide Market Study”, China has overtaken Japan – if the Chinese people’s overseas spending on luxury goods is counted – as the world’s second largest luxury goods market in 2010.

The luxury goods market has completely recovered from the international financial crisis and the total sales value of luxury goods worldwide stood at 172 billion euros (around 250 billion U.S. dollars) in 2010, exceeding Bain & Company’s prediction in October 2010 of 168 billion euros.

The luxury goods sales value set a new record in 2010, reaching 172 billion euros, topping the peak sales value before the international financial crisis. Luxury goods consumption will be fully restored in 2011 as sales are expected to reach 185 billion euros in 2011..

The report also found that while luxury sales in the United States and Europe increase 12 percent and 6 percent respectively, Asia saw an unprecedented growth of 22 percent in 2010, with the sales on the Chinese mainland rising 30 percent. Bain & Company forecasted that luxury sales in North and South America are set to grow 8 percent in 2011, while Japan will see luxury sales fall 5 percent. Luxury sales on the Chinese mainland are expected to grow 25 percent at constant currencies this year to 11.5 billion euros, faster than any other luxury goods market in the world.

via [People’s Daily Online]