The prediction for 2011 is that luxury brand products like Gucci, Burberry and Louis Vuitton will grow their sales. For Bain & Company, a consultant firm who produce an annual study on the luxury brand market, the main reason for this growth comes from China, where the newly rich are eager to show their wealth by buying luxury products.
The brand strategy for growth by Versace and Max Mara is to invest heavily in marketing to the Chinese consumer. Gucci has also been successful in introducing its brand to this market by making its products accessible through the design of simple wallets and accessories. Both Gucci and Louis Vuitton have been the most successful luxury brands in China and their key to success is understanding the tastes and habits of new consumers.
Luxury brands had record sales in 2007, but the prediction for 2011 is for sales to outperform this record. Leather bags, jewellery, shoes and watches are expected to see the biggest demand and growth.