Bain Forecasts a 12% Drop in Jewelry Sales in 2009
April 30, 09Sales of luxury goods are expected to decline by some 10 percent this year, a recently publicized report forecasts, falling to $201 billion worldwide. The Bain & Co. report is a somber one of the jewelry industry, following an October report by the firm that predicted a 7 percent decline.
The Bain report forecasts depressed sales in the first half of the year, dropping 20 percent compared to 2008, before sales recover in the second half of 2009.
Jewelry and watch sales are forecast to fall by 12 percent globally.
The U.S., which accounts for about half of global diamond jewelry sales and a third of luxury-goods sales, is especially hard hit. Bain expects U.S. luxury sales will drop by 15 percent this year. That compares to expected sales declines of about 10 percent in both Europe and Japan.
Providing a glimmer hope, Bain expects sales to rise 7 percent in China and 2 percent in the Middle East this year.