The Bain Luxury Study 2017 Spring Update, released earlier this week, predicts that the global personal luxury goods market will grow by 2% to 4% to $284-$289.6 billion in 2017. According to the report, quoted by Gem Konnect, this growth will be driven by “healthier local consumption in China and increased tourism and consumer confidence in Europe”.
The reports highlights the need for brands to “adapt to a millennial state of mind”. Millennials, Bain says, “will be a key driver to push the market to €290 billion ($324 billion) in sales by 2020”.
Claudia D’Arpizio, a Bain partner and lead author of the study, said: “This year looks promising so far. After a difficult 2016, the first quarter of 2017 brought some relief to the luxury industry. Factors such as the continuous repatriation of Chinese consumption as well as a positive outlook in Europe both for locals and tourists will help drive overall market growth during the remainder of the year”.
According to the report, “Bain’s research identifies five key topics that will drive the market for personal luxury goods going forward”:The US market landscape; increased Chinese purchases at home and abroad (mostly in Europe); the ever-growing influence of digital commerce; a widening gap between winners and losers; the new wave of millennial consumers.
