BAIN: LUXURY MARKET REACHES A “NEW NORMAL GROWTH” IN 2019
The “Bain Luxury Goods Worldwide Market Study, Spring 2019” report, issued by Bain & Company, shows that the global personal luxury goods market has reached a “new normal” pattern of growth this year following back-to-back years of strong performance in 2017 and 2018.
According to IDEX Online, the luxury market enjoyed 6% growth in 2018, totalling $260 billion in sales. The market “is expected to balloon to $271-276 billion in 2019” with a 4%-6% growth. The main drivers of growth are “the acceleration in domestic spending of mainland Chinese consumers and an increase in European tourism”.
Claudia D’Arpizio, a partner with Bain & Company and lead author of the study, said: “This year looks to be on par with our new normal of growth in the market. China continues to dominate the luxury scene. Elsewhere we are continuing to see geopolitical uncertainty shape and reshape tourism spending patterns, with Chinese consumers choosing to spend domestically with more frequency. Overall we are seeing moderate growth in most markets”.