UK: Luxury sector to record 8.5% sales growth in 2012
By Petah Marian | 5 April 2012
The UK luxury sector is set to see sales grow 8.5% in 2012, according to the latest figures from luxury industry body Walpole and Ledbury Research.
A survey by the two firms has found that the luxury industry's growth is on target to achieve forecasts of GBP9.1bn (US$14.4bn) by 2015.
British luxury remains popular with international consumers, through sales to tourists or overseas. In 2012, 72% of UK brands will have a presence outside of the country, with many focusing on expanding into East Asia and Africa.
Some 37% of the companies surveyed are present in China and a further 27% have made plans to enter the market, with 67% looking at Tier 3 cities.
However, the UK is falling behind its European peers in attracting Chinese shoppers, with the biggest Chinese shopping windows - such as Chinese New year and Golden Week - having no impact on sales for 71% of the sector.
Meanwhile, 2012 is a particularly important year for Britain. 63% of the luxury brands surveyed believe the Olympic Games will positively impact their sales, with 20% anticipating a double-digit rise as a direct result. Some 58% believe that the Diamond Jubilee celebrations will also boost sales.
Outside of London, and consistent with last year, Edinburgh and Manchester are closely tied as the next most important shopping hubs in the UK. Online remains important for luxury brands, with 50% seeing more online-only clients.
Some 42% of the companies surveyed believe UK manufacturing is so important that it could not be offshored, the report found.
"In our third annual report we see the importance of the international market to the UK industry," said Ledbury Research director James Lawson.
"Despite an uncertain economic picture in the short term, British luxury brands are upbeat about 2012, not only due to planned domestic celebrations, but also because of the brands' growing international footprint.
"The report shows it's no longer a case of concentrating on China, but looking across Asia, be it Korea, Vietnam or Indonesia, as well as the Middle East, Latin America and Africa."
Sectors: Apparel, Footwear, Manufacturing, Retail
Companies: Lawson
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UK: Luxury sector to record 8.5% sales growth in 2012
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