Japan's luxury market is set to grow for the first time in four years as status-conscious consumers help rebuild the economy, encouraging expansion by Gianni Versace SpA and Mulberry Group PLC.
Sales of luxury goods here may rise 2 percent in 2011, following a contraction that started in 2007 and wiped 14 percent off the industry's value, Bain & Co. estimates.
Confidence is returning after the March disasters. As growth resumes, deflation ends and tourists visit from China, Japan is drawing investment from companies including Mulberry, the British maker of ¥485,000 Bayswater bags. Versace returned this year after closing its Japan operations in 2009.