- U.K., Spanish tourism to lead recovery in European luxury
- China’s domestic consumption will also drive growth: analysts
Tourism in Spain and the U.K. will lead a rebound in European luxury spending this year, while Chinese domestic consumption also increases, Bain & Co. said, raising its forecast for global growth in 2017.
Sales of items such as designer handbags and fine jewelry will rise 2 percent to 4 percent to as much as 259 billion euros ($290 billion), Bain said in a report Monday. The consultancy had predicted growth of 1 percent to 2 percent 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 after market leaders like LVMH and Gucci-owner Kering reported first-quarter sales growth that beat expectations.