Britain’s luxury sector will double by 2017, according to a two-firm study released this month. Walpole and Ledbury Research studied recent growth statistics and the expectations of industry leaders, and now predict a growth £12.2 billion, or $18.9 billion, over the next five years–£7.4 billion, or 12%, in 2013 alone.
Much of the massive growth will be due to overseas expansion–Brazil, India, Russia, and China are all key targets. The upcoming Olympics and World Cup have attracted firms to Brazil–though only 13% of those surveyed operate in Brazil, 52% expressed plans to enter the market. Infrastructural instability makes India a challenging market; still, over 50% of those surveyed wish to eventually enter the Indian market.
British tourism is still a critical source of luxury revenue–primarily tourists from the U.S, though the number of Chinese tourists is growing rapidly, and may overtake American tourism in luxury dollars spent.
The expectations of industry leaders are merely that–expectations. Still, there’s no denying that the luxury sector is going strong. As Julia Carrick, Walpole’s chief executive, told the press, “Despite the backdrop of the Eurozone crisis and a difficult economic environment, the UK luxury industry remains extremely robust.