Report: Global luxury goods sales in 2024 are expected to reach nearly 1.5 trillion euros, basically unchanged from 2023.

The latest "2024 Global Luxury Market Research Report" jointly released by Bain & Company and the Italian luxury goods industry association Altagamma shows that the global luxury market sales in 2024 are expected to reach nearly 1.5 trillion euros, which is roughly the same as in 2023, with a year-on-year growth rate expected to be between -1% and 1%. Due to economic uncertainty and price increases, the growth of the personal luxury goods market has slightly slowed down. Faced with macroeconomic uncertainty and frequent price increases by luxury brands, global luxury consumers are beginning to cut back on non-essential spending. Bain & Company predicts that the global personal luxury goods market will face its first slowdown since the Great Recession (excluding the pandemic period). Based on current exchange rates, global sales are expected to decrease by 2% compared to last year. This trend has directly resulted in a reduction of roughly 50 million luxury consumers over the past two years, especially among young consumer groups represented by Generation Z, with a decreasing preference for luxury brands. At the same time, the proportion of luxury consumption contributed by top clients continues to rise, although they feel that the brand's exclusivity towards them is weakening. Bruno Lannes, Senior Partner at Bain & Company, stated that despite macroeconomic uncertainty, the luxury market continues to demonstrate extraordinary stability this year, mainly due to consumers' continued enthusiasm for luxury experiences. However, over the past two years, 50 million luxury consumers have voluntarily or involuntarily reduced their purchase of luxury goods, indicating that brands urgently need to explore new value propositions by offering rich innovative experiences and new interactive communication to win back consumers, especially the younger generation. Additionally, brands must always prioritize the experiences and needs of top clients, creating highly enjoyable surprises, and contemplating innovative one-on-one personalized service models. Looking at all consumer groups, the key to success lies in utilizing technology to achieve broad personalization. Luxury experiences and experiential goods are showing strong growth. As consumers shift their focus to travel and social activities, they prefer self-care and health experiences over physical luxury goods, ensuring continued attractiveness of luxury experiences. Experiential goods have also piqued the interest of consumers, especially yachts, cars, and private jets targeting high-net-worth individuals. The trend of "small luxuries" is on the rise, with categories such as beauty and eyewear shining brightly. Sales of jewelry remain strong, particularly for high-end jewelry and the US jewelry market. However, the growth rate of watches, leather goods, and footwear has slowed down, mainly due to consumer pressure to downgrade their consumption and becoming more selective when choosing products. Nonetheless, small leather accessories and entry-level luxury goods continue to be highly sought after by Generation Z consumers. As more consumers seek value-driven shopping experiences, the popularity of the second-hand market is increasing, especially in jewelry, apparel, and leather goods. Channel trends: Discount stores replace full-price stores as the preferred shopping channels for consumers. Most luxury brands' physical stores are facing a steep decline in foot traffic. As luxury consumption enters a value-for-money phase, discount store channels have seen remarkable sales growth, replacing full-price stores as the preferred channel for purchasing entry-level luxury goods. Meanwhile, after experiencing fluctuations during the pandemic period, online shopping is gradually moving towards stable development. Against the backdrop of consumers' increasing demand for immersive, personalized, and brand-exclusive experiences, successful brands can attract more foot traffic back to physical stores through differentiated value propositions and rich in-store interactive experiences. Regional markets: The Americas, Japan, and Europe's luxury goods markets are performing well. America: Despite fluctuating consumer confidence and a slowdown in foot traffic growth in major cities, the US market's quarterly sales data are showing steady improvement. Sales performance outside the US market is mixed, with Canada troubled by the absence of Chinese tourists, while Mexico and Brazil show positive development trends. Asia-Pacific: In the first half of 2024, with the continuous depreciation of the Japanese yen prompting a surge in tourism spending in Japan, the luxury goods market in Japan continues to lead global growth. However, with major brands beginning to adjust prices in Japan to varying extents, this momentum has recently weakened. In contrast, the growth rate of the luxury goods market in mainland China has sharply slowed down, primarily due to low consumer confidence and Chinese tourists diverting to neighboring and European countries, coupled with weak domestic consumption, resulting in a less satisfactory overall market performance this year. Europe, the Middle East, and Africa: Buoyed by the luxury consumption trend of inbound tourists, especially in the southern regions of Europe and vacation destinations, the quarterly sales of the European market are showing increasingly strong growth but are gradually leveling off. In the UK and northern Europe, the influx of tourists has had a limited impact on luxury goods sales growth. The development trends in the Middle East vary, mainly due to regional tensions affecting the choice of tourist destinations. Emerging markets are expected to become new sources of sales growth, including Latin America, India, Southeast Asia, and Africa. By 2030, these markets are expected to add over 50 million upper middle-class luxury consumers. Future prospects: By 2025, the global luxury goods market is expected to rebound, but this largely depends on the macroeconomic development of key markets. Looking ahead to 2030, as the consumer base expands, the luxury goods market may embark on a long-term positive development trajectory. Bruno stated, "To seize future growth opportunities, luxury brands must reconsider the market environment, rekindle brand creativity, and reorganize brand tactics. This means returning to brand values and the essence of the industry: driving purchase intent through outstanding craftsmanship and creativity, unique brand values, creating meaningful, individualized, and resonant customer relationships and consumer experiences, and empowering perfect execution through various technological means.""Making artificial intelligence technology play a crucial role in realizing brand value propositions.""Bonjour, comment a va?" "Hello, how are you?"