The luxury goods market is expected to fall 6 per cent globally to €211bn (£130.8bn) this year as the sector heads for one of its toughest ever years.

According to a report by Verdict some of the luxury sector’s key markets, including US and Japan – both of which are experiencing very tough economic conditions – will continue to see sharp declines in luxury goods sales.

The fall in international travel, which is key to luxury sales, is also expected to continue to have a negative effect.