The first market decline in 10 years
The global market for the personal suite category (clothing, footwear, watches and accessories) will decrease by 23% to EUR 217 billion this year. Such a forecast is given by the experts of the consulting company Bain Co. and the Italian luxury goods manufacturer association Fondazione Altagamma, writes Forbes.
The market will decline for the first time in ten years, with such an "unprecedented fall in volume for the first time in the history of measurements", experts say. In 2009, during the financial crisis, the decline was only 8% compared to 2008, and in 2020 the decline will be almost three times as large.
In 2019, the luxury market increased by 7% to 281 billion euros. As predicted by Bain Co., by 2025 it was expected to reach 330-370 billion euros, but the world was hit by the Coronavirus Pandemic. The only region where demand for luxury goods has not declined has been China, a key consumer.
In China, on the contrary, the market will grow by 45% compared to last year, analysts predict. The most serious blow was struck across Europe category consumption there fell by 36% and the US market fell by 27%.
The total luxury market, which includes both items and impressions (cruises, wines, food), will also decrease by 23% and will be worth an estimated EUR 1 trillion.
Despite the negative assessments, Bain Co experts are confident that the market is recovering fast.
The world has experienced a "year of shock and change", but recovery is not far off, experts say. For 2021, Bain Co. experts expect growth of 10-12% to 17-19% depending on the macroeconomic situation. However, they add that the market will only be able to return to the indicators of 2019 by the end of 2022 beginning of 2023.