Milan (AP) – Global sales of personal luxury goods “are slowing down but not falling apart”, according to a consulting study by Bain & Co.
Personal luxury sales in 2024 erode to 364 billion euros (US$419 billion) Slide 2% to 5% this yearThe study said it cites the threat of economic slowdown caused by U.S. tariffs and geopolitical tensions.
“Nevertheless, stay positive in tough times – three wars, economic slowdown, inequality to the greatest inequality – this is not a collapsed market,” said Bain partner and collaborator who studies Claudia D’Arpizio, which is slowing down but not crashing. ”
In addition to external headwinds, luxury brands are also alienated from consumers Continuous creativity crisis Bain said the price rose. A recent survey in Italy shows that subcontractors’ sweat-to-trip luxury handbag conditions have also been closed by buyers.
The study shows that sales are falling sharply in the strong markets of the United States and China. In the United States, market volatility due to tariffs has prevented consumer confidence. China recorded a three-sixth contraction under low consumer confidence.
The Middle East, Latin America and Southeast Asia are recording growth. Studies show that Europe is mostly flat.
This creates a huge difference between brands that continue to be strong creative and revenue growth, such as Prada Group, which saw revenue reach 13% in the first quarter to 1.34 billion euros, while brands such as Gucci fell 24% to 1.6 billion euros during the same period.
Gucci owners dry Last week, Italian car executive Luca de Meo was hired Renaultinstallation turnover. The decision was because its three brands (Gucci, Balenciaga and Bottega Veneta) were launching new creative directors.
Kering’s stock surged 12% in appointment news. D’Arpizio highlights his track record, reinstateing French automaker Renault’s profitability and former role as marketing director public and Fiat.
“When you’re in a stage where growth is still the title of the game, all of these factors resonate well in a market like luxury, but you also need to make the company more agile at cost and turn some brands around,” she said.
Brands are also making changes to minimize the impact of U.S. tariffs. These include shipping directly from production locations rather than warehouses and reducing inventory in stores.
D’Arpizio said that with aesthetic changes, “there is no meaning to fill the channel.”
Still, many headwinds alleviate the industry still have no control over the company.
“Many (negative) aspects are not going to change anytime soon. Tariffs that can be changed are clearer, but I don’t think we’re going to stop war or political instability in a few months,” she said.
Altagamma Matteo Lunelli, president of the Italian Luxury Brands Association, highlighted the overall growth of Hat 28% from 2019-2024, “put us well above pre-pandemic levels.”
Although luxury spending is sensitive to global turmoil, it can rebound quickly in history and is powered by new markets and pent-up demand.
2008 – The 2009 financial crisis plummeted the sales of luxury clothing, handbags and footwear, from 161 billion euros to 147 million euros in two years. The market recovered its losses in 2010 in 2010 due to the acceleration of the Chinese market. Similarly, sales were sold on new records after a 21% drop in sales during the pandemic.
