Sales of luxury goods will rise at least 5% this year as shoppers in the United States and Europe continue to snap up high-end watches, jewelry, and shoes. This despite political uncertainty linked to the conflict in Ukraine and soaring inflation, consultancy Bain said Tuesday.
Bain estimates that global sales of personal luxury goods will reach at least 305 billion euros ($320 billion) this year. This is according to its most conservative estimate, and up to 330 billion euros in a more optimistic scenario. Which is building on its fast rebound from pandemic lockdowns. This compares with a previous estimate of 300 billion to 310 billion euros.
Analysts at Bain said global sales of personal luxury goods, which include clothing, accessories, and beauty products, reached 288 billion euros last year. Surpassing a previous forecast for 283 billion because of strong spending over the holidays.
Even with high inflation and disruptions from COVID-19 lockdowns in mainland China, luxury firms tapped into local demand. Especially in Europe and the United States, with effective marketing. “We were for sure astonished,” by resilient consumer confidence despite inflation, D’Arpizio said.
Domestic spending from Chinese consumers will probably recover in the second half of the year. Also highlighted South Korea as a booming market, while the United States overtook Europe as the largest luxury market last year.