French luxury group PPR has said that it expects the US to be the most robust market for luxury goods for the next 5-10 years, reports the Financial Times. The company's chief executive, Francois Henri Pinault, told the FT he expected growth in that luxury market to reach 7 percent a year for the next five years. This is 2 percent higher than PPR's subsidiary, the Gucci Group, had estimated its annual global growth to be in December.

“America's economic strength is a result of the diversity of its population. This applies in particular to the luxury industry which, by its nature, is aspirational,� said Pinault, whose father founded the group and who took over in May of this year.

PPR counts Gucci, Yves Saint Laurent, Bottega Veneta, Boucheron and Sergio Rossi among its 10 luxury brands. The group plans to reduce its dependence on the French market, which still makes up 60 percent of its total revenue. The group expects much of the growth in the US to come from purchases made by Chinese, Indian and Hispanic immigrants. The US currently accounts for 20 percent of the group's luxury sales, but is the fastest growing market. “In our business, we are in a leading position in France,� said Pinault. “But we are too dependent on the French economy. As a result, our main priority is to develop and grow the company internationally.�

Pinault said he was not concerned that the weaker US dollar might have a negative effect on US sales, partly because the group plans to move most brands further upmarket. “The best-selling handbag at Gucci this year was priced at $850. Last year, the bestseller was $600,� he said.

Pinault, who was in New York to attend a ceremony in honour of YSL designer Stefano Pilati, said that the group's priority right now is to return the YSL business to profitability. Last year the company made a loss of €70 million and needs to double its revenue to €300 million (£203 million) to break even. PPR acquired YSL in 1999. Since then, the number of outlets has grown from 14 to 64.