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According to the study from global business consulting firm Bain and Co, the luxury goods market experienced a 15-20 percent decline during the initial two quarters of 2009, declining from $219.81 billion in 2008 to nearly $197.82 billion.
Bain estimated a 15 percent decline in luxury goods like jewelry sales in the Americas and 10 percent fall in Europe and Japan. These are areas which account for more than 80 percent of global sales.
According to Bain, smaller luxury markets presents more guarantee on products, with estimated growth of 7 percent in China and 2 percent in the Middle East. However, these gains will provide just a small return against extreme declines in major markets. Jewelry, watch sales is expected to decline by 12 percent in 1Q, 2Q of 2009.
Among the main luxury product categories, apparel will be affected the most, decreasing by 15 percent. Jewelry and watches will decrease by 12 percent, whereas leather goods, shoes and accessories will decrease by 10 percent. Luxury cosmetics and fragrances will be very tough categories in 2009.
The study also showed that a trend among luxury shoppers to shift to lower-price-point items while still staying loyal to top-of-mind brands.