New evidence shows that retail in Australia is not dying as the luxury market is nearing $1 billion.

MO Luxury’s
Evaluation of the Australian Luxury Market report shows that while the global luxury industry suffered a 8 per cent decline in 2009, the Australian luxury industry saw a 22 per cent growth on average for fashion and accessories and 14 per cent for watches and fine jewellery.

The study also shows that Australians are the third biggest users of luxury online retail site Net-A-Porter, with an average spend per customer of $1,190, compared to an international average of $478.

Melinda O’Rourke, MO Luxury director, said the sector showed a combined market value of $800 to $820 million, with figures indicated a constant growth since 2006.

She also claimed the global financial crisis did not affect the market where in 2008 the local luxury market increased by 24 per cent and 22 per cent in 2009.

“Even applying a relatively conservative revenue growth forecast of 11 per cent the value of the luxury sector in 2010 could easily fall in the $890 to $910 million range and is moving towards the $1 billion mark,” O’Rourke said.

The growing retail presence in Australia is further indicated as more global luxury brands enter the local market including miu miu, Bottega Venetta and Christian Dior.