5 Luxury Goods Stocks for Santa Claus Rally
Bain & Company forecasts 18% growth for watches and jewelry sales in 2011 as consumers are increasingly migrating from unbranded luxury purchases to branded purchases. The firm forecasts 14% growth for brand-owned stores, which is 50% higher than the increase forecast for third-party retailers, and estimates that direct-owned boutiques now represent 30% of luxury sales worldwide.
The luxury good finds a good market in Middle East, as Chinese customers in Gulf have been ranked as the world's No.2 luxury customers behind Americans, according to consultancy Bain & Co. Emerging markets -- such as China, Brazil and the Middle East -- are transforming the luxury industry, with total sales in 2011 expected to top $265 billion. Euromonitor predicts the value of the luxury goods market in the UAE market to increase by 16% in 2011 to $2.31 billion.