Bain: Luxury sales growth to recover in 2011 on Chinese demand

Consultancy Bain & Company, Inc. has lifted its outlook on the sales growth of luxury goods, citing a recovery in sales in Europe and the US and surging demand in China, Reuters reported. Bain raised its forecast for 2011 growth to 8% from a previous forecast of 3-5% following positive earnings reports from luxury retailers like LVMH (LVMH.BIT), Burberry (BRBY.LON) and Tod’s (TOD.BIT). The consultancy also raised its estimate for growth in 2010 luxury sales to 8% at constant currencies, or 12% nominal growth, up from a previous estimate of 6% growth at constant currencies. Much of this growth was driven by demand from China. Luxury sales in mainland China rose 30% in 2010 and are expected to grow 25% at constant currencies this year to US$17 billion, Bain said. Meanwhile, US luxury sales are set to grow 8% to US$77 billion in 2011, after rising 10% at constant currency terms in 2010.