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Global luxury outlook still strong, sales to grow at least 5% this year -consultancy
Home > Top Stories > Global luxury outlook still strong, sales to grow at least 5% this year -consultancy
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PARIS (Reuters) – Sales of luxury goods are set to rise at least 5% this year as shoppers in the United States and Europe continue to snap up high-end watches, jewelry and shoes despite political uncertainty linked to conflict in Ukraine and soaring inflation, consultancy Bain said Tuesday.
“Consumption doesn’t seem to be affected so far,” Bain partner Claudia D’Arpizio told Reuters in an interview.
Bain estimates that global sales of personal luxury goods will reach at least 305 billion euros ($320 billion) this year, according to its most conservative estimate — and up to 330 billion euros in a more optimistic scenario — building on its fast rebound from pandemic lockdowns. This compares with a previous estimate for 300 billion to 310 billion euros.
Bain widened its projections to account for strong current sales, said D’Arpizio, despite a wobbly stock market in the United States and concerns about an economic recession.
“We are aware that we are in a very turbulent environment,” she said.
Analysts at Bain said global sales of personal luxury goods, which include clothing, accessories and beauty products, reached 288 billion euros last year, surpassing a previous forecast for 283 billion due to strong spending over the holidays.
Even with high inflation and disruptions from COVID-19 lockdowns in mainland China, luxury firms tapped into local demand in Europe and the United States with effective marketing.
“We were for sure astonished,” by resilient consumer confidence despite inflation, D’Arpizio said.
Domestic spending from Chinese consumers will likely recover through the second half of the year, according to Bain, which also highlighted South Korea as a booming market.
The United States overtook Europe as the largest luxury market last year, Bain said in a previous report.
($1 = 0.9522 euros)
(Reporting by Mimosa Spencer; editing by Jonathan Oatis and Jason Neely)
Luxury goods are high-end products that are not essential but are desired for their quality, brand, and prestige. These include items like designer clothing, high-end watches, and jewelry.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured annually and can impact consumer spending.
Consumer confidence measures how optimistic or pessimistic consumers are regarding their expected financial situation. High consumer confidence typically leads to increased spending.
A recession is a significant decline in economic activity across the economy, lasting more than a few months. It is typically visible in GDP, income, employment, and retail sales.
Personal luxury goods refer to high-end products that consumers purchase for personal use, including fashion items, accessories, and beauty products.
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