The rate of growth for global spend on luxury products will more than double over the next five years but clothing will lose out to the latest must-have watches and jewellery according to Verdict Research.
Verdict, which published its Global Luxury Retailing 2007 report today, said the demand for luxury products, including clothing and accessories, will soar by 71% over the next five years. The market is worth £131billion but will hit £225bn by 2012 helped by increased demand from emerging economies.
However clothing, which accounts for 44.3% of the luxury market, will drop back to a share of 41.9% in 2012 as other categories increase sales. Jewellery and watches will be the next must-have luxury items, according to the report.
Further growth is expected to come from online sales and from brands taking greater control of their distribution channels. The report said many brands had already brought more of their retail networks under direct control this year.
According to Verdict, luxury group LVMH, which includes Louis Vuitton, Marc Jacobs and Donna Karan, is the market leader with a 10.8% share of global spending.