Report reveals changing face of luxury goods market
13/01/2017
It was commissioned by Italian luxury goods association Fondazione Altagamma and showed that overall luxury spending in 2016 posted steady growth of 4% to an estimated $1.08 trillion. It suggested that luxury consumers were moving away from purchasing goods in favour of experiences, such as travel and gastronomy.
Bain & Company said the market for personal luxury goods was flat at $249 billion. This represents the third consecutive year of modest growth it added, highlighting that there was been a big change in the luxury market.
“Brexit, the US presidential election and terrorism have all led to significant uncertainty and lower consumer confidence, hindering sales of personal luxury goods,” the report revealed.
The growth in the sales of luxury accessories slowed to 1% in 2016, but handbag sales, worth $44 billion, and shoe sales, valued at $16 billion, showed growth of 2%. Among consumers of leathergoods and shoes, it noted a “clear shift” towards entry-priced goods such as backpacks and sneakers.
The world’s two major luxury markets, the Americas and Asia (excluding Japan), contracted 3% in 2016. Sales in Europe declined 1% due to a decline in tourism. The decrease would have been even more severe were it not for strong sales in the UK, which were driven by a depreciated pound in the wake of the country’s decision to leave the European Union.
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