Home / Knowledge / News / Fashion / Global luxury goods market to grow 6-8% in 2018: Bain
Global luxury goods market to grow 6-8% in 2018: Bain
16
Jun '18
Global luxury goods market to grow 6-8% in 2018: Bain
A positive trend in the luxury market across all regions is set to drive it higher by 6-8 per cent this year to reach €276-281 billion, according to the Bain & Company’s Luxury Study 2018 Spring Update. ‘China’ and ‘millennial state of mind’ remain the buzzwords in an industry that could reach €390 billion globally in sales by 2025, says the study.

The study released in collaboration with Fondazione Altagamma, the Italian luxury goods manufacturers’ industry foundation, identifies four trends that will drive the luxury market in 2018 and beyond. It says that Chinese consumers will be a key nationality driving the growth of the luxury market. Online continues to gain ground as boundaries blur with traditional physical channels. Social media continues to influence purchases especially for younger consumers. Streetwear categories will remain a key lever to attract new customers. It notes that volume is driving market growth, not just price increases. Exchange rate fluctuations are redistributing spend among regions but not impacting global growth.

“2018 is off to a strong start,” said Claudia D’Arpizio, a Bain & Company partner and lead author of the study. “Currency fluctuations will have an impact, but we expect the healthy trend to continue across all regions and customer segments. Chinese consumers continue to stand out as a growth-driver for the industry, and are more fashion-savvy and digitally advanced than ever before, accelerating the shift of the industry to the millennial state of mind.”

In the Americas, the US luxury market benefitted from a weaker dollar during the crucial holiday season. Tourists from Asia and Europe boosted key cities while local consumers were drawn to luxury again. Canada is growing while performance in Latin America is mixed. The region as a whole is expected to grow between 3 to 5 per cent in 2018.

Europe was negatively impacted by a stronger euro, which had an impact on purchases by tourists. Some countries benefited from stronger consumption (Russia, France, Switzerland) while UK and Germany experienced a slowdown. The study forecasts growth of 2-4 per cent for the region.

Mainland China is expected to account for the lion’s share of growth in 2018. Bain & Company expects this market to grow by 20-22 per cent. Brands are learning how to cater to local consumers, often young and heavily influenced by social media.

Purchases by tourists boosted spending in Japan, especially Tokyo and Osaka, though it was partially redirected towards experiences. Local influencers and social media are also key decision influences for younger local customers. It could grow at the rate of 6-8 per cent.

Across the rest of Asia, Hong Kong and Macau continue on their recovery trajectory. South Korea benefits from visitors from China, but political tensions in the region could have a crucial impact on 2018 growth trends. Bain & Company believes this region could grow by 9-11 per cent.

The rest of the world is expected to be flat or see only slight growth of 2 per cent. Dubai remains stable and supported by international tourists, while Australia is set to benefit from a larger store footprint, notes the study.

Looking ahead to 2025, Bain & Company expects growth to pick up to 4-5 per cent per year increasing the market size to €366-390 billion.

“Luxury brands should view themselves as the masters of their own destiny,” said Bain & Company partner and report co-author Federica Levato. “Customers are responding to targeted strategies, and top performing brands are already winning over the customers of tomorrow.” (KD)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: PR Newswire/Hoang Trieu

Apparel/Garments | On 14th Jul 2020

Dony Garment makes protective gear main production line

Dony Garment, a Vietnamese garment production company, has made...

Pic: Bodygram

Retail | On 14th Jul 2020

Transcosmos signs agreement with Bodygram, Japan

Transcosmos, headquartered in Japan, has signed a partnership...

Pic: IWTO

Textiles | On 14th Jul 2020

How clothes are used determines sustainability: AWI

Sustainability of clothing greatly depends on the number of times it...

Interviews View All

Mohammad Mamun Ar Rashid, UL VS Bangladesh Ltd

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Smarth Bansal, Colorjet India Limited

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Poojaa Kumar Deepak, Zeven

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Ritu Ajbani & Neha Agarwal,

Ritu Ajbani & Neha Agarwal

Petit Royal, co-founded by entrepreneurs <b>Ritu Ajbani and Neha...

Arup Chakraborty,

Arup Chakraborty

Mirrorsize is a US-based start-up that provides artificial intelligence...

Farheen B Rahman & Priti Jain,

Farheen B Rahman & Priti Jain

Founded by business-designer duo <b>Priti Jain and Farheen Rahman</b>,...

Robert Erichsen, Statex Produktions & Vertriebs GmbH

Robert Erichsen
Statex Produktions & Vertriebs GmbH

Statex Produktions &amp; Vertriebs Gmbh, founded in 1978 and headquartered ...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search