LVMH CEO: Luxury Market To Reach $300 Billion By 2012; US Has Potential
MOSCOW -(Dow Jones)- Global sales of luxury goods will double over the next five years, while there is still potential in the U.S., Bernard Arnault, the chief executive of LVMH Moet Hennessy Louis Vuitton (LVMUY) said Wednesday.
Luxury goods will generate EUR300 billion by 2012, Arnault told an industry conference in Moscow, citing wealth creation, the growing number of consumers and a push by producers into emerging markets. He added that the U.S. – the global leader in luxury, but a country whose huge economy is showing signs of a slowdown – nevertheless has untapped potential. “The U.S. accounts for 16% of global luxury sales, but 28% of the world’s gross domestic product,” Arnault said. Of the newer markets, Arnauld said Russia, China and India could together account for a third of global luxury sales within the next 10 years. Behind the U.S., Japan and China are in second and third place in terms of luxury goods sales.
Web site: http://www.lvmh.com/
Author | Andrew Langley
Source | DowJones Business News