by Mimosa Spencer
PARIS (Reuters) – Sales of luxury goods are expected to grow by at least 5% this year, with demand for top-of-the-range products showing no sign of weakness despite the economic context, in Europe and the United States in particular, consultancy Bain & Company said on Tuesday.
“Consumption does not seem to be penalized for the moment,” notes Claudia d’Arpizio, analyst and partner at Bain, in an interview with Reuters.
According to the consultancy, sales of luxury goods should reach at least 305 billion euros this year if the most pessimistic assumption materializes and could exceed 330 billion euros if the most optimistic forecasts materialize.
The wide range of forecasts is explained by the risk of an economic slowdown, particularly in the United States, where equity markets could suffer from the effects of fears of recession.
“We know that we are in a very turbulent environment,” notes Claudia d’Arpizio.
According to Bain’s calculations, sales of luxury products represented 288 billion euros last year, better than the 283 billion expected, due in particular to a global increase in spending during the holiday season.
Bain points out that growth accelerated in the first quarter of 2022, as disruptions linked to the health crisis in mainland China were offset by strong demand in Europe and the United States.
“We were of course amazed by the resistance of consumption in the inflationary context”, admits Claudia d’Arpizio.
“Overall, local consumption is very strong,” she added, pointing to efforts in Europe where consumers have reconnected with their social lives and updated their wardrobes.
In the United States, which last year became the leading luxury market ahead of the Old Continent, brands have developed more extensive ranges aimed at targeting their audience more precisely, whether on the basis of ethnicity or cultural.
(French version Nicolas Delame, edited by Kate Entringer)