Chinese consumers help luxury market to rebound
30/10/2017
Earlier this year, it forecast that sales of luxury goods such as handbags, shoes and jewellery would grow between 2% and 4% after stalling in 2016. This has now been revised upward thanks to strong demand from Chinese customers and younger shoppers.
The report, which was compiled with the help of Italian luxury goods association Fondazione Altagamma, said luxury spending by visitors to Europe has increased. This is good news after security threats in Europe had eroded tourist confidence.
Bain reported that demand from middle class Chinese customers has rebounded more quickly than expected, which has offset a disappointing luxury environment in the US.
It also revealed that younger consumers are starting to make an impact on the luxury market as brands turn to social media or collaborations with high-profile celebrities to boost their appeal. Bain warned however that the notoriously fickle nature of these customers means brands and retailers must work harder to stop them straying away to rivals.
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