Europe's Luxury Market Facing Challenges?

The European luxury goods market is suffering from weak demand and a credit squeeze, the chief executive of Italian fashion house Roberto Cavalli told Reuters on Friday.

"The luxury market in Europe is in evident difficulty, especially in southern Europe. Who denies this does not want to face reality," Cavalli CEO Gianluca Brozzetti told the news source, adding that he predicts 2012 to be a "difficult year."

Altagamma, Italy's luxury goods trade association, said earlier this month it expected the global sector to grow modestly in 2012 on the back of strong consumption in Asia and better prepared businesses.

But an economic slowdown in Europe that began in the final months of last year is reportedly fueling concerns about a repeat of the 2008-2009 financial crisis, when the luxury industry suffered a severe slowdown.

 

Free Luxury Travel Newsletter

Like this story? Subscribe to The Dossier

Luxury Travel Advisor’s only newsletter, covering unique destinations and product news for affluent travelers. Delivered every Tuesday & Thursday.
Read more on:

Suggested Articles:

Opening in 2022, Conrad Chia Laguna Sardinia will be the first Conrad property in Italy and is currently going through an extensive renovation.

The Ritz-Carlton, Laguna Niguel is offering two experiences highlighting the 87th Annual Pageant of the Masters and 89th Annual Festival of the Arts.

As of this week, Portugal is open to all Americans with proof of a negative COVID-19 test. Here's what travelers need to know.