Global sales of luxury goods are set to grow by 10% this year prompting hope of a recovery in the sector.
According to a report by US consultancy Bain & Co, sales of luxury fashion, accessories and other upmarket products are expected to reach €168bn (£147.6bn) this year. This marks a sharp contrast to 2009 when global luxury goods sales fell 8% to €153bn (£134.5bn).
Luxury goods sales in Europe are predicted to be up by 6%, with the US showing an increase of 12%. However the big growth area is Asia, where sales are expected to surge 22%, driven by wealthy Chinese shoppers taste for luxury labels, according to the report.
Menswear sales are growing more quickly than womenswear, according to Bain & Co, which also expects consolidation in the market as larger brands buy up smaller labels and those with weaker performances.
In 2011, the global luxury goods sales are predicted to reach up to €176bn (£155bn), although this represents a slower rate of increase, between 3% and 5%.