Global Luxury Market Expected to Hit $100 Billion by 2008

The global luxury goods market looks set to be worth around $100 billion by 2008, due in large part to celebrities “showcasing the latest clothing and accessories”, according to British market research firm Mintel.

Expensive watches and jewelry, as worn by sports, pop and film stars account for almost a fifth of the market that was conservatively valued at around $71 billion last year as it began to recover from the impact of 9/11, the SARS outbreak and the war in Iraq.

Watches and jewelry account for 18 percent of the market while perfumes and cosmetics account for 37 percent with fashion and leather goods making up the largest category with 42 percent of luxury goods sales.

Caroline Taylor, who wrote the report, said: “Even the ultra-expensive luxury jewelry market is becoming popularized. When it comes to jewelry, minimal, sleek styles continue to find favor, but this is counterbalanced by the pre-eminence of hip-hop culture, particularly in the U.S., and the ‘bling’ factor associated with it.”

”This subculture can also be seen to have contributed to the recent growth in the increased popularity of luxury goods, particularly amongst men,” she added.