by Wine Business International
Spending on luxury goods, including Champagne, is set to rise to €300b ($445b) within the next five years, according to Bernard Arnault, chief executive officer of LVMH Moet Hennessy Louis Vuitton SA.
In a speech to an industry conference in Moscow, Arnault claimed that the sales of luxury goods will climb thanks to increasing wealth in Russia, China and India. According to Bloomberg News, Arnault cited research to show that China is already the world’s third-largest luxury market, following by Russia. Spending will also increase inside the US, which still has ‘untapped potential’, currently accounting for 16% of world luxury sales, compared to Japan’s 31%.
"The creation of new wealth, readiness to spend by consumers and continued development of new consumers and new markets,” will drive growth, he said. "The trick is not to see it as a short-term El Dorado. It takes detailed planning and minute research.”
