Despite the economic conditions around the world luxury good are expected to grow 8% this year and then slow down to an 6% growth in 2009 and 2010 said Paola Durante, head of corporate broking for Merrill Lynch in Italy.
Luxury goods are enjoying double digits growth in emerging markets and U.S and European has seen rising in the single digits. Analysts had lowered their estimates which they had expected 12 percent sales growth for 2008 and 10 percent for the following year at the beginning of the year.
"We can see there has been a cut in estimates but there are still expectations for growth even if at single-digit," said Durante.
3 comments:
This is really interesting. It is expected that growth rates for goods like this would be much lower or even negative in the market that we are faced with. Consumers must be thinking that they are doing their own part to "stimulate" the economy.
I think that righ people's comsumption is important in economic downturn as today. Historically, when there is economic crisis, the government used to impose policies that favor wealthy people, expecting that they spend their money , which helps stimulate the economy.
This is really interesting. Apparently the rich hasn't been affected much by the crisis like we thought they would have been. Looks like the poor still has to suffer more after all.
Obama should really make rich people pay more tax next year.
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