Chinese consumers are still driving the growth of the luxury goods market
16/11/2018
This sector has outpaced the overall luxury market, which is only forecast to grow 5% this year.
Bain & Company expects this positive trend to continue in the coming years. It is predicting growth of 3-5% per year until 2025, which would see it reach €320-365 billion. The group warned however that socio-political issues, commercial policies, and potential short-term soft recessions could make this road to growth “a bumpy one in the short term”.
Returning to 2018, the report said Chinese consumers are leading the positive growth trend. It revealed that their share of global luxury spending is now estimated to be 33%
Overall, shoes and jewellery were the top luxury growth categories, at 7% each, followed by bags and beauty products. Apparel suffered due to lacklustre sales in the menswear segment.
The report also brought interesting data about luxury sales channels. While the retail channel grew 4% and the wholesale channel grew 1%, they were comfortably outpaced by online shopping, which grew 22% compared to 2017. It is now valued at $27 billion, according to Bain & Company.
This was the 17th edition of the Bain & Company Luxury Study. It is compiled with the help of Italian luxury goods association Fondazione Altagamma.
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