Rebound in European luxury goods spend, says Bain

Tourism in Spain and the UK will lead a rebound in European luxury spending this year, while Chinese domestic consumption also increases, consultants Bain & Co said, raising its forecast for global growth in 2017.

Sales of items such as designer handbags and fine jewellery will rise 2% to 4% to as much as €259 billion, Bain said. The consultancy had predicted growth of 1% to 2% in December, and the forecasts exclude currency swings.

High-end labels like Burberry and Prada found it hard to keep up momentum in 2016 amid flagging consumption in China and a terror-related downturn in European tourism. Since then, the outlook has become rosier for market leaders like LVMH and Gucci-owner Kering. While sales will grow faster than expected overall in 2017, performance between brands will become more polarised, Claudia D’Arpizio, the study’s lead author, said.