Scilla Huang Sun, manager of the JB Luxury Brands fund, explains why emerging market consumption remains a key driver for the luxury goods market in 2013.
We expect 2013 to be another solid year for the luxury industry, with growth of 6%-8%. Approximately 90% of growth will come from emerging market consumers, who account for half of all luxury sales. This number is likely to increase further as worldwide wealth is predicted to rise - by almost 50% from 2012 to 2017. There are now more millionaires in Asia than in Europe, and China should surpass Japan as the second wealthiest country in the world in the next five years. The Chinese represent the most important consumer for the luxury industry buying nearly 30% of all luxury goods. In 2...
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