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Luxury goods market expected to grow by 2-4 percent in 2017

A resurgence in Chinese consumer spending and a return of tourism confidence in Europe will boost luxury goods market in 2017.

luxury goods marketThe luxury market is expected to get back to growth in 2017. A resurgence in Chinese consumer spending as well as increasing customer confidence in Europe will boost global personal luxury goods market growth by 2-4 percent (at constant exchange rates) in 2017 to €254-259 billion. Brands must rethink their strategies and adapt to a millennial state of mind, which will be a key driver to push the market to €290 billion in sales by 2020.

These are the key findings from Bain & Company, the world’s leading advisor to the global luxury goods industry, in the “Bain Luxury Study 2017 Spring Update” released here today in collaboration with Fondazione Altagamma, the Italian luxury goods manufacturers’ industry foundation.

This year looks promising so far. 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” affirmed Claudia D’Arpizio, a Bain partner and lead author of the study.

At constant exchange rates, Americas is expected to grow between -2 to 0 percent, Europe between 7-9 percent, Mainland China 6-8 percent, Japan luxury goods market is expected to be flat, the rest of Asia is set to shrink by -2 to-4 percent, the rest of the world is expected to see only slight growth of 2 percent.


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