In May 2017, management consulting firm Bain & Company, in collaboration with Fondazione Altagamma (an association of high-end Italian companies), released the 2017 Spring Update to its Worldwide Luxury Market Monitor.
According to the update, the global personal luxury goods market in 2017 is expected to grow by two to four percent on a year-over-year basis to reach between €254 billion and €259 billion at constant exchange rates. The two key drivers for the growth are increased sales in China, where growth of six to eight percent is expected, and Europe, with an expected growth rate of seven to nine percent compared to 2016.
The outlook for 2020 are sales of €280 billion to €290 billion representing an average annual growth rate of three to four percent from 2016 where it was €249 billion.
According to the authors of the study, Claudia D’Arpizio and Federica Levato, who are both partners in Bain’s Luxury Goods practice, the five key topics to focus on in 2017 are:
- The state of the US market, which remains the largest for personal luxury goods
- Purchase volume by Chinese consumers at home and abroad
- The growing influence of the digital world
- The widening gap between successful and unsuccessful brands
- The new wave of millennial consumers
- The 16th edition of the Worldwide Luxury Market is expected to be released in October 2017.
Source: Worldwide Luxury Market Monitor, 2017 Spring Update
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