Sales of luxury goods are set to see their third straight year of double-digit revenue growth in 2012, according to a new report from management consulting firm Bain & Co, fuelled by growth in Asia - especially China - and the Americas.

But while management consulting firm Bain & Co says concerns about market weakness are "somewhat overblown," it also warns that brands need to keep up with changes in the market.

The annual 'Luxury Goods Worldwide Market Study' forecasts that luxury goods revenues will increase 7% during the final three months of 2012. This will give full-year growth in 2012 of 10%, and push total luxury goods revenues to an estimated EUR212bn (US$277bn).

Asia-Pacific sales, driven by China, are projected to grow by 18%, while the Americas region will see revenues rising by 13% this year. Growth in Europe, however, is seen at half that of last year, with growth of 5%.

Bain estimates that the luxury goods market will grow, in real terms (at constant exchange rates) by 4-6% per year between 2013 and 2015, pushing the market to between EUR240bn and EUR250bn by the middle of the decade.

In 2012, sales of leather goods are set to rise 16% to EUR33bn; shoes are seen up 13% to EUR12bn; while sales of men's apparel and women's apparel are forecast to be up 10% and 9% respectively to EUR26bn and EUR27bn.

Chinese consumers are transforming the market, the research confirms. They now make half of all luxury purchases in Asia, and nearly one-third of those in Europe. Globally, one in four purchases of personal luxury goods comes from Chinese consumers.

Tourists now account for 40% of global luxury spending; ecommerce is growing at 25% a year; and young consumers are seeking different experiences from luxury consumption, including uniqueness and entertainment.

Furthermore, accessories have become the core category in personal luxury goods, with leather goods and shoes for the first time taking the largest piece of the market, at 27% of sales. Higher levels of male spending, and increasing interest in higher quality, higher price items have driven this change.

"Concerns about market weakness are somewhat overblown," said Claudia D'Arpizio, partner of Bain in Milan and lead author of the study.

"But we are seeing sharp disparities between brands that are not keeping up with the quickening pace of change in the market and those that are adjusting to shifts in tastes and demographics.

"Fundamentals for growth remain strong, but it's going to be a bumpy ride. The strategies that brands relied on to win in the past simply aren't going to connect with the segments that will matter most in the second half of the decade."