Sales of luxury items have shown good signs of recovery in the aftermath of the global recession, a study by Verdict Reseach has found.

The UK’s jewellery and watch market is currently the second largest in Europe, while the global market for the sector is expected to increase by more than 50% over the next five years.

Verdict reported that since 2007, the luxury items sector has shown less growth than predicted, but believe that the tide is turning and sales of watches and jewellery should total $28bn (£17.6bn) in 2010 in Europe alone.

One analyst at Verdict, Ruta Perveneckaite, said ” We expect to see a return to growth for the UK jewellery market this year with the luxury market stealing market share from the mass market.”

It is believed that Luxury goods manufacturers will continue to focus on the recent upsurge in branded own stores, which are expected to multiply in the coming years, with many brands finding that sales from these stores have been more fruitful than sales through department stores.

Online trade is another area that is expected to grow, with many people, Verdict included, seeing this as a channel which has not been fully utilised. This would seem the logical step as consumers continue to increase their online spending.

Perveneckaite continued ” So far many brands are missing an opportunity by not launching into the online space. Consumers are now increasingly willing to buy big ticket items online so brands should change their approach to capitalise on this”.

Please note the views expressed in this blog are the views of the author, Andre Brown and do not represent the view of Locayta, its employees or its shareholders. For more information about Locayta, visit www.locayta.com