After overtaking Europe in the luxury goods segment in 2010, the region has managed to continue its upward trajectory in 2011, recording growth that surpassed that of more mature markets.
According to the market researcher; "in 2011, Asia-Pacific grew share further, to account for 38 percent of the market," and in spite of the macroeconomic context, is to set to see a "growth of 11 percent at rsp for 2012."
The figures further outlined Europe's share of the global market, which dropped to 33 percent and the Americas to 25, while the 'other' regions share showed growth from 3.8 percent in 2010 to 4.4 percent in 2011.
Overall, the report notes that the global luxury consumer goods market (excluding consumables and automobiles) grew by 14 percent in 2011 and came very close to €200 billion at retail selling prices.
"In absolute terms, double-digit revenue growth was seen across all four regions (Europe, the Americas, Asia-Pacific and 'Other'), but Asia-Pacific's growth, in excess of 20 percent, overshadowed that seen in Europe and the Americas."
More travel opportunities = growth in the segment
As travel grows, Mintel says that luxury goods consumers are purchasing more abroad due to high taxes on luxury goods in China along with more global travel opportunities, proving that it is not just the usual overseas purchasing destinations that are benefiting.
"Hong Kong, Macao and Singapore are all benefiting, but a host of luxury retail destinations including the UK, France, Australia, Japan and now, as visas become more readily available, the USA, are all standing to benefit too."
According to Paul French, chief China market strategist at Mintel; "In Europe, much of the growth in luxury goods sales in 2011 can be attributed to tourist spend, particularly from Russia and Asia-Pacific, underlining that Chinese luxury-goods consumers encompass two markets: domestic and overseas.”
Overall, the report concludes that the perfume and cosmetics category underperformed the total global luxury goods market in the last five years, but that it was largely due to the buoyancy of other categories, and “the two most recent years have seen a strong improvement in demand for the perfume and cosmetics category."