- 7. Mai 2023
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- Category: Allgemein
A report by Bain & Company reveals China is set to become world's largest luxury market by 2025. In contrast, Mainland China lost a little ground, dropping 1% from 2021. Report. Yet, they still require an infrastructure catch-up to facilitate the expansion locally. Evolving luxury map: new cities emerging, large cities back and persisting suburban areas. We therefore forecast that the market value of personal luxury goods will rise to between 540 billion and 580 billion by the end of the present decade, from an estimated 353 billion in 2022an increase of more than 50%. continued focus for large established brands, with few exceptions intercepting the next gen of customers. The analysis notes that, even with a possible global recession next year, the impact on the industry could be different from that of the 2008-2009 global financial crisis. Countries coped with high inflationary . This provides both opportunities as well as potential threats to brand, fashion platforms and investors. And finally, Bains positive growth projections hinge on Chinese consumers and their continued appetite for luxury brands. Get your bi-weekly update on the e-commerce insights: console.log("1"),function(e,n,o,t,l,c,r){e.Newsletter2GoTrackingObject=l,e[l]=e[l]||function(){(e[l].q=e[l].q||[]).push(arguments)},e[l].l=1*new Date,c=n.createElement(o),r=n.getElementsByTagName(o)[0],c.async=1,c.src="https://static.newsletter2go.com/utils.js",r.parentNode.insertBefore(c,r)}(window,document,"script",0,"n2g"),n2g("create","yj76l2pj-nqhljzcz-qvj"),function(e){e(function(){console.log("1"),e("#nl2go_form").on("submit",function(n){n.preventDefault(),console.log("1");var o={email:e("input[name=email]").val()};console.log("1"),n2g("subscribe:send",{recipient:o},function(n){console.log(n),201==n.status?e("#nl2go_form").html("Succes! Among the rising stars, India stands out; its luxury market could expand to 3.5 times todays size by 2030. Broader meanings and business models will emerge. ESG activities correlate to stronger financial performance - bain.com Luxury sales to grow at least 5% this year - Bain | Reuters Luxury Goods: trends and predictions for 2022 (Bain Report) While Bain doesnt predict where wholesale and retail will end up by 2025, its pretty certain that the twenty-year trend away from wholesale will continue. Fondazione Altagamma is led by Matteo Lunelli, who was named chairman in 2020. Chinese customers will be back by 2022-23, Japan by 2023 and Europe in 2024. Banks should adapt lending strategies to account for - bain.com The makeup and fragrances categories led growth. Sales of private yachts and jets grew by 18% at current exchange rates relative to 2021, reaching 26 billion. PARIS The luxury industry has shown resilience with a return to pre-COVID performance levels and an estimated sector growth of more than 6% between 2022 and 2026. Despite the uneven recovery in personal luxury goods, it is projected to post CAGR between 6% to 8% and reach sales of 360 to 380 billion ( $409 to $432 billion) by 2025. Lighting and living/bedroom categories benefited the most, as consumers looked for more comfort, functionality, and beauty. The major brands moved aggressively into the online space over the past two years, which grew from 12% share of the personal luxury market in 2019 to 22% in 2021, a stunning 38% uptick since 2019. Only fine wines and spirits (77 or $88 billion) and high-end furniture and housewares (45 or $51 billion) will exceed 2019 levels, up between 12% to 14% and 13% to 15% respectively. Both LVMH and Kering have seen their luxury goods sales more than double. You may opt-out by. More troubling is they are expected to continue on a downward curve through 2025 when they will hold only between a 10% to 12% share each. Further, some 40% of the online segment is now controlled by websites devoted to a single brand, rather than multi-brand marketplaces. That ratio has come down from 3.4 times in 2018. As a result, Bain-Altagamma analysis sets out two scenarios, with sales growth in the personal luxury goods market set to be between 3 to 5% or 6 to 8% (at constant exchange rates), depending on the strength of economic recovery in China and the ability of the US and Europe to withstand economic headwinds. A powerful factor for sector growth this decade will be generational trends. But the Global State of the Consumer Tracker makes it easy for you to access consistent, high-quality data on consumer sentiment and behavior in retail, consumer products, automotive, and travel. 1 Richemonts FY2021 financial year ended in March 2021, so saw a greater negative impact of the COVID-19 pandemic on their FY2021 results compared with other Top 5 companies which had later year end dates. Omnichannel retailing and a major shift in passenger mix are poised to transform traditional airport shopping. Local Japanese consumption was solid, and the market also benefited from the return of tourists after the country reopened to visitors. These consumers are hungry for unique products and experiences, putting brands VIC (very important client) strategies into overdrive. A powerful factor for sector growth in the rest of the decade will be generational trends,the analysis reports. This trend has also been reflected in product categories, through the shift to the 'post-streetwear' era, which maintains some elements of so-called streetwear (such as gender fluidity, occasion-less apparel, inclusivity and sports-driven inspiration) but goes beyond its style codes through new and enhanced techniques, materials and functionalities. Find Construction Companies in Cottenchy - Dun & Bradstreet However, rising sustainability concerns, coupled with increased operational costs, narrowed the potential customer base and restricted airplane utilization rates. This reports reveals and describes what they are: China doubling and Americas booming, Europe and Japan are still in recovery mode. In general, luxury brands have the chance to secure common prosperity, but they will need to challenge and adapt their strategy. Travel retail is in recovery mode, at least in Western markets, but not yet back on its pre-Covid track. The competition will heat up, new players will rise, and consumer preferences will shift rapidly. A deliberate (and effective) elevation strategy has driven a progressive price increase across the industry (driving around 60% of the 2019-2022 growth) without damaging volume growth. In coming years, the spending of Gen Z and 'Gen Alpha' is set to grow some three times faster than for other generations until 2030, making up a third of the market. One can argue that the secondhand luxury goods buyer isnt the same as the primary market buyer. Solid fundamentals are set to boost the markets value to between 540 billion and 580 billion by the end of the present decade, from an estimated 353 billion in 2022a rise of 50% or more. Within the personal luxury segment, only shoes (23 or $26 billion), jewelry (22 or $25 billion), and leather accessories (62 or $70 billion) will beat 2019 results, up 5%, 3% and 4% respectively. Sales of fine wines and spirits hit 96 billion, up 16% on 2021. Globally the Americas (31% SOM) and China (21% share) will top 2019, up 12% and 3% respectively, but Europe (-10% with 25% share) and Japan (-9% with 7% share) will remain underwater. This article is a preview of the Top 10 companies listed in the upcoming Global Powers of Luxury Goods 2022, The top 5 companies are the powerhouses of luxury brand sales, About the Global Powers of Luxury Goods report, Global Powers of Luxury Goods | Deloitte | global economy, Luxury Consumer, Infrastructure, Transport & Regional Government, Telecommunications, Media & Entertainment, update your settings to accept analytics and performance cookies. In 2021, they accounted for around 30% of new customers that entered the market since 2019, which is a total of 25% of the Personal Luxury Goods market. Luxury brands have faced three years of tremendous turbulence and uncertainty, but the industry shows more strength, resilience, and ability to innovate than before. The online personal luxury goods alone almost doubled in 2 years. In keeping with greater social interest in diversity, equity, and inclusion, galleries and collectors focused more on areas such as women artists and African art. Bain Warns China Luxury Growth to Further Decelerate in 2022 As China began to crack down on various sectors under the name of common prosperity, growth throughout the second half of 2021. Bain Warns China Luxury Growth to Further Decelerate in 2022 Please read and agree to the Privacy Policy. In 2021, the personal luxury market is expected to grow 1 percent compared to 2019 and 29 percent compared to 2020. For any questions or to arrange an interview, please contact: Gary Duncan (London) Email: gary.duncan@bain.com, Orsola Randi (Milan) Email: orsola.randi@bain.com Tel: +39 339 327 3672. The higher and top end of the luxury market is also expanding at the same time and accounted for some 40% of market value in 2022 compared with 35% last year, with these consumers hungry for unique products and experiences, and putting brands VIC (Very Important Client) strategies into overdrive. South-east Asia and Korea are winning in terms of growth and potential. However, Chinese lockdowns, a continued shortfall in international Asian tourism, and limited business travel constrained total market growth. Accessories remained the largest personal luxury goods category and grew by 21%23%. As a result, two scenarios could play out in 2023, with sales growth in the personal luxury goods market ranging from 3% to 5% in the base case and up to 6% to 8% (at constant exchange rates) in a more positive case, depending on the strength of economic recovery in China and the ability of the US and Europe to withstand economic headwinds. Just as they recently did through excellent products and human-centric engagement, they must now deal with new priorities: ESG, creativity chain, tech & data. Mainland China should overcome the Americas and Europe to become the biggest luxury market globally (25%27% of global purchases). Spending on experiences will be the last luxury outlay to recover historical highs given its reliance on the resumption of international tourism and business travel. That reflected a renewed value proposition in the US and successful reengagement with tourists in Europe. And the data is continually updated so that you can track current trends. MA Boosted by a strong market performance across quarters, and despite macro-economic indicators worsening globally, as well as specific challenges in China, the personal luxury sector is set to see the value of its sales jump to 353 billion in 2022, marking an advance of 22% at current exchange rates (or 15% at constant exchange rates) versus the previous year, the study projects. This is a BETA experience. Moreover, Gen Y and Gen Z are expected to contribute roughly 180% of the total growth from 2019 to 2025. The online channel's market share remained in line with 2021. The coming years will see a further blurring of the boundaries between monobrand outlets and e-commerce, which will increasingly push brands to take an omnichannel 3.0 approach, enabled and enhanced by new technologies. It comprises nine segments, led by luxury cars, luxury hospitality, and personal luxury goods, which together account for more than 80% of the total market. Despite the slow recovery process, however, the demand for experiences to be allowed back is higher than ever. The worlds Top 5 luxury goods companies generated revenues of US$122 billion in FY2021. All luxury categories have now recovered to 2019 levels or better, with hard luxury, leather and apparel leading the resurgence following the pandemic. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American, New Bain & Company-backed venture aims to help companies better trace data, achieve sustainability goals, ESG activities correlate to stronger financial performance, reveals new study from Bain & Company and EcoVadis. When segmented into goods vs. experiences, spending continued to skew to tangible products in 2022. Translating wholesale and licensing revenue to its retail equivalent, Bain estimates global personal luxury goods sales will reach 283 billion ($324 billion) by year end, marking a 1% increase. When typing in this field, a list of search results will appear and be automatically updated as you type. Department stores declined by 8% and went from 18% SOM to 15% in 2021. With 2022 already knocking on our doors, its time to step into another year full of new and interesting trends, figures and actions for the Luxury Goods market. The impact of a possible global recession on the industry in 2023 could differ from the impact of the 200809 global financial crisis. The pandemic-fueled interest in consuming gourmet food at home continued, boosting select food retailers and fostering demand for culinary education. 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. Find info on Construction companies in Cottenchy, including financial statements, sales and marketing contacts, top competitors, and firmographic insights. Between 2021 and 2022, about 70% of leather category growth has been driven by price increases; by contrast, price increases accounted for only about 50% of category growth from 2019 to 2021.
