luxury goods consumption

This increase will simply reflect the importance these markets have in the luxury goods consumption,' she said.

McKinsey expects the growth in luxury goods consumption to come from cities that are not well penetrated by international businesses.

Bain analyst Claudia D'Arpizi said 2009 "is probably the worst year for luxury goods consumption in recent memory".

Bernstein Research expects demand from Asia, outside of Japan, for bags, shoes and watches to drive luxury goods consumption until at least 2015.

”Selective distribution is an essential part of the brand image and experience of luxury goods consumption,” says LVMH, for example.

Luxury goods consumption is surging across Asia and the Far East, particularly China, where it is now common to give diamond engagement rings.

Last year, luxury goods consumption by foreigners accounted for 51 percent of a total of l8.5 billion euros in Italy, according to the country's luxury industry body Altagamma.

Hermès International shrugged off worries about a slowdown in Chinese luxury goods consumption, after reporting a 30 per cent sales increase in the country and record profit margins in 2012.

Forecasts of a stepdown in luxury goods consumption comes as those in the industry admit to concerns that the strong gains made by the industry in the past two years may face obstacles next year.

If customers tightened their purse strings in 2009, spooked by the financial crisis, and 2010 was the year they started loosening them again, 2011 should see a return to normal luxury goods consumption, in line with historical trends.

Yet, while she is correct in saying that the new luxury is more subtle and involves real quality, she errs when she suggests that outward projections of wealth, culture and status are no longer motivational aspects of luxury goods consumption.