
The prediction for 2011 is for growth in sales of luxury brand products like Gucci, Burberry and Louis Vuitton. This has been forecast by Bain & Company, a consultant firm who produce an annual study on the luxury brand market. The main reason for the growth is the demand in China by the newly rich looking to promote their wealth through buying luxury products.
The 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 their brand to this market by making their products accessible through the design of simple wallets and accessories. Both Gucci and Louis Vuitton have been the most successful luxury brands in China. The key to their success is understanding the tastes and habits of their new consumer.
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 forecast to see the biggest demand and growth.

