he truly global top-tier luxury brands are surging in China

As the luxury industry enters the last quarter of 2010 and prepares for 2011, executives are grateful for what could have been a worse year considering the state of the world's economy. The truly global top-tier luxury brands are surging in China, while holding their own in the US, Japan, and Europe. Leading public companies have done much better than privately-owned brands by using their heritage, innovation, and resources to gain market share. Many family-owned European brands, rich with history but lacking innovation, have suffered and are desperately looking for capital. Overall, the industry has seen tepid growth; this trend is likely to continue for the next three years unless some unforeseen, and highly unlikely, positive event occurs and saves the global economy.

Meanwhile, many luxury executives have not been standing still. Stripped of its facade by the combination of a severe recession and the dawning of the age of transparency, the luxury industry has been fighting hard to maintain its relevancy. Behind the scenes, several companies have already conducted some direly needed soul-searching that has begun to pay off.