[Sixstrings]

Luxury sales rebound to pre-crisis levels

MILAN (AP) -- The luxury sector is rebounding better-than-expected this year thanks in large part to wealthy Americans replenishing their wardrobes after a year of self-denial and nouveau riche Chinese indulging in a worldwide spending spree, according to a new study released Monday.

Sales of designer clothes, fine leather goods, jewelry, watches and other indulgences around the globe is forecast to surge 10 percent to euro168 billion ($236.7 billion) in 2010, recovering from a disastrous 2009 when sales declined 8 percent to euro153 billion, Bain & Co. said in its annual review of the sector commissioned by Italy's Fondazione Altagamma association of high-end producers.

"It is really impressive how customers have rebounded in their approach to these purchases, in particular in the United States and in Europe," said Bain partner and luxury goods expert Claudia D'Arpizio.

Sales in the U.S. market were up by 12 percent, compared with 6 percent growth in Europe and 22 percent growth in Asia, Bain said.

(snip)

Asian luxury sales were powered by China where sales grew by a whopping 30 percent and poising China to become the third largest luxury market in five years. Japan recorded a 1 percent contraction.

But the real story in Asia are the Chinese tourists, who have extended their spending-fueled travels beyond Asia.

"The big surprise of the last few years are the Chinese. ... Now they are very visible in Europe and also the United States. They are traveling all over the world," D'Arpizio said.
http://finance.yahoo.com/news/Luxury-sales-rebound-to-apf-2670420725.html?x=0&sec=topStories&pos=2&asset=&ccode=

Just more evidence that the global financial crisis has just been a transference of wealth to the top brackets.

[Keith_McClary]

Just more evidence that the global financial crisis has just been a transference of wealth to the top brackets.

This title puts a positive spin on it:
Will Luxury Autos Lead the Road to Recovery?

[Serial_Worrier]

Yeah right. As if Apple is moving millions of iPhones, iPods and Macs just because the wealthy are buying. I got news for you, things are fine for everyone except the poor and the over-leveraged.

[Ludi]

I got news for you, things are fine for everyone except the poor and the over-leveraged.

And the unemployed. Or do they qualify as "poor"?

[dbruning]

They work hard not to count the unemployed at all.

Is it possible that the previously purchased luxury goods are wearing out, "forcing" those with the means to replace them? In better years I've seen neighbors buy new computers every 2 new even if the ones they had were still pretty solid, now they wait a little longer, but when they do buy, they still get the best they can. Might the same be happening here? Still buying the best they can, but doing it a little slower?

[Sixstrings]

Is it possible that the previously purchased luxury goods are wearing out, "forcing" those with the means to replace them?

No, generally the rich don't use something until it "wears out." I think what's going on is that while some rich were wiped out, others who made a fortune off the crisis have taken their place. And according to the article, a new rising class of Chinese super-rich is making a big impact.

Also, things like computers and middle class stuff aren't "luxury" items. The study was on the real luxury stuff, including "designer clothes, fine leather goods, jewelry, watches and other indulgences." $500 iPads don't count.

[Ludi]

And according to the article, a new rising class of Chinese super-rich is making a big impact.

Proof, if any were needed, that the Chinese are by no means "communist."