Altagamma Studies | Altagamma Bain & Company analyzes for Fondazione Altagamma the market and financial performance of more than 280 leading luxury goods companies and brands. India Private Equity Report 2023 | Bain & Company Spirits grew faster than wine, with status spirits growing internationally and across categories, tapping into usage occasions once reserved for wines. This generational factor is one of the critical trends affecting the development of the luxury market in 2022, and for the rest of the decade, that are highlighted by today's report. All categories have now recovered to 2019 levels or better, with hard luxury, leather goods, and apparel leading the resurgence following the pandemic. Sadove suggests these numbers may not be as stark as they first appear. Moreover, Gen Y and Gen Z are expected to contribute roughly 180% of the total growth from 2019 to 2025. Solid rebound, polarized between entry prices and tops items. (Getty Images) By Tamison O'Connor 21 June 2022 However, the spots will be replaced by new consumers, mostly Generation Y and Z. Luxury brands have faced three years of tremendous turbulence and uncertainty, but the industry shows more strength, resilience, and ability to innovate than before. Required fields are marked *. Tech-enabled profit pools and strong generational trends to drive 60%+ market growth to 2030. Among the rising stars, India stands out; its luxury market could expand to 3.5 times todays size by 2030. 2020-21 is the turning point for establishing the keyword for the next 20 years of luxury. 'Gen Y' and 'Gen Z' accounted for the entire growth of the market in 2022, it notes. Sales growth accelerated to 28%, equivalent to 1.3 times the growth rate for new luxury goods. The market for personal luxury goodsthe core of the core of luxury segments and the focus of this analysissaw impressive growth in 2022, coming on the heels of the V-shaped Covid rebound enjoyed in 2021. 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. But despite present and continuing economic challenges, the luxury market continued to perform strongly throughout this year to date, with winners for brands across the board, and positive growth for some 95% of brands, today's report concludes. Luxury Fashion Industry Recovery 2022 Bain Report | Hypebae The higher and top end of the luxury market have been expanding and accounted for some 40 percent of market value in 2022 compared with 35 percent in 2021. 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. Local Japanese consumption was solid, and the market also benefited from the return of tourists after the country reopened to visitors. 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. These are key findings from the 21st edition of the Bain & Company-Altagamma Luxury Study, a collaboration between Bain & Company and Fondazione Altagamma, the trade association of Italian luxury goods manufacturers. Sales of new watches grew by 22%24% and reached a record 52 billion, reflecting solid demand for top-of-the-range models and iconic pieces, but growth was capped by low product availability. "):200==n.status?e("#nl2go_form").html("You are already subscribed. The access to the reports is reserved to Altagamma Companies. Tech-enabled profit pools and strong generational trends to drive 60%+ market growth to 2030. The global luxury goods industry overall is projected to achieve a market value of some 1.4 trillion in sales revenue this year, growing by 21% from 2021 (at current exchange rates), according to the latest Bain & Company report with Altagamma, the Italian luxury goods manufacturers' industry association. Report. According to the latest Bain & Company Study with Altagamma, the segment will continue to expand until 2030 despite the . Bain & Company is the global consulting firm that helps ambitious leaders transform their companies into tomorrow's world leaders. Not all sectors can enjoy stable recovery, however. In 2022, the luxury market generated positive growth for 95% of brands. Art benefited from being seen by the wealthy as an alternative asset to hedge against volatility in financial markets. Translating wholesale and licensing revenue to its retail equivalent, Bain estimates global personal luxury goods sales will reach 283 billion ($324 billion) by year end, marking a 1% increase. Weak Hong Kong vs mixed Taiwan and Macau. In May 2020, we began making regular forecasts of how soon aviation demand would recover from the effects of the Covid-19 pandemic. If we have selected the wrong experience for you, please change it above. Fashion ranking: Top 20 clothing retailers in Germany. And finally, Bains positive growth projections hinge on Chinese consumers and their continued appetite for luxury brands. Specialty retailers went from 20% share of the personal luxury goods market in 2019 to 16% in 2021, a 10% decline in sales. LONDON, ENGLAND - DECEMBER 27: A woman holds a Louis Vuitton shopping bag on Clifford Street on [+] December 27, 2021 in London, England. The companies making up the Top 5 have been relatively stable, with only LOral Luxe entering the Top 5, replacing Richemont*, Chart 1: Luxury goods sales US$ million: FY2016 & FY2021. Brands continued to exert more control over their distribution, with directly operated channels increasing in importance again. You may opt-out by. China represented 12 percent of total sales in 2022, but Luca Lisandroni, the company's co-CEO, is already calling 2023 a "golden year" for the China market. Global luxury goods market takes 2022 leap forward and remains poised April 19, 2023. Fine art market rebounding thanks to gradual reopening of public auctions and art fairs. The customer wants a seamless experience to shop anywhere, anytime. The personal luxury goods industry, in particular, saw a further growth acceleration this year, coming on the heels of the V-shaped rebound enjoyed in 2021, the research shows. A powerful factor for sector growth in the rest of the decade will be generational trends,the analysis reports. Although there will never be another China in terms of growth contribution to the industry, new markets (such as India and emerging Southeast Asian and African countries) have significant potential, assuming their luxury shopping infrastructure can evolve quickly enough. Asia (excluding Japan) switched to second position, followed by Europe. Download By Bain & Company Scope: Global Mar 13, 2022 A new section in this year's report will focus on circularity strategies and the secondary/resell market, which has become increasingly important in the luxury sector. But what's the current scenario? Luxury spending trends in 2022 The overall luxury market tracked by Bain & Company comprises nine segments: luxury cars, personal luxury goods, luxury hospitality, fine wines and spirits, gourmet food and fine dining, high-end furniture and housewares, fine art, private jets and yachts, and luxury cruises. ESG activities correlate to stronger financial performance - bain.com Already it is about half the size of each of the three leading personal luxury goods categories leather accessories, beauty and apparel and its 27% growth from 2019 leaves every other personal luxury goods category in the dust. Commenting on the critical trends and themes for the luxury industry up to 2030, Federica Levato, partner at Bain & Company and leader of the firm's EMEA Luxury Goods and Fashion practice, co-author of today's report, said: "In their path to 2030, luxury brands will need to leverage their cultural avant-garde position and insurgent excellence to overcome the challenges ahead and shape the world. 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. Wealthy individuals turned to private jets more in 2022, due to their perceived safety and efficiency vs. commercial travel. "The nouvelle vague thenew wave of the luxury goods market will demand evolution amid disruption, adaptation amid uncertainty, and an expansion of creativity in all of the basics all while new trends and concepts develop",said Claudia D'Arpizio, a Bain & Company partner and leader of Bain's Global Luxury Goods and Fashion practice, the lead author of the study. Global Retail, Wholesale & Distribution Sector Leader, Managing Director | Deloitte Consulting LLP. The share of top customers has been expanding and accounted for some 40% of market value in 2022, compared with 35% last year. Secondhand luxury goods sales are not included in Bains personal luxury goods market size estimate, but in 2021, Bain reports they will account for 33 billion or $38 billion in sales, up 27% from 2019.
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