bain and company luxury report 2022

You may opt-out by. Among the rising stars, India stands out for growth potential, which could see its luxury market expand to 3.5 times todays size by 2030, propelled by an increasing interest and evolving attitudes and behaviors among (young) customers towards luxury goods. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. With digital advertising expenses growing and more power brands moving into the space Magna reports global digital media grew by nearly one-third year-over- year in 2021 smaller brands cant begin to match the online marketing muscle of the major brands. The coming years will see a further blurring of the boundaries between mono-brand and ecommerce, which will increasingly push brands to take an Omnichannel 3.0 approach, enabled and enhanced by new technologies. Across 64 cities in 39 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. Between 2017 and 2021, the market size of second-hand luxury ballooned by 27 percent (first-hand luxury only grew by 12 percent over that same period.) Fondazione Altagamma is led by Matteo Lunelli, who was named chairman in 2020. Spirits driving maret recovery thanks to growth in local consumers interest for Asian spirits, increasing interest for status spirits and better ability vs ine brands in catering interest of younger generations. Some tourists bounce back over the summer. Omnichannel retailing and a major shift in passenger mix are poised to transform traditional airport shopping. Find company research, competitor information, contact details & financial data for FINANCIERE JIMENEZ of COTTENCHY, HAUTS DE FRANCE. Despite worsening macroeconomic indicators globally and specific challenges in China, the sector performed strongly across quarters, and it is likely to have reached 353 billion in retail sales value in 2022, marking an advance of 22% at current exchange rates (or 15% at constant exchange rates) vs. 2021. London and the UK suffer the most, while Russia is championing thanks to a strong repatriation. The global ranking of luxury sales by region changed in 2022, as the Americas regained the top position for personal luxury goods sales. Our 10-year commitment to invest more than $1 billion in pro bono services brings our talent, expertise, and insight to organizations tackling today's urgent challenges in education, racial equity, social justice, economic development, and the environment. This article is a preview of the Top 10 companies listed in the upcoming Global Powers of Luxury Goods 2022, The top 5 companies are the powerhouses of luxury brand sales, About the Global Powers of Luxury Goods report, Global Powers of Luxury Goods | Deloitte | global economy, Luxury Consumer, Infrastructure, Transport & Regional Government, Telecommunications, Media & Entertainment, update your settings to accept analytics and performance cookies. The study reveals that some of the consumption fundamentals of China will go through changes. Sales of fine wines and spirits hit 96 billion, up 16% on 2021. Travelers were lured not just to leading cities but also to out-of-the-way destinations, in keeping with the pandemic trend to seek rural solitude. This reports reveals and describes what they are: China doubling and Americas booming, Europe and Japan are still in recovery mode. Sales of private yachts and jets grew by 18% at current exchange rates relative to 2021, reaching 26 billion. After 20 years of large expansion and deep evolution, Covid-19 has fast forwarded and anticipated some of the key changes for the next 20 years of the global luxury market. The customer is going to shop and going to shop in different ways, Sadove affirms. The customer wants a seamless experience to shop anywhere, anytime. The luxury markets consumer base will expand from some 400 million people in 2022 to 500 million by 2030. 2023. We observed a rebound when and where Covid restrictions were lifted, yet not enough to offset the performance of the second quarter. The companies making up the Top 5 have been relatively stable, with only LOral Luxe entering the Top 5, replacing Richemont*, Chart 1: Luxury goods sales US$ million: FY2016 & FY2021. As they seek new ways to connect with their customers, they are changing their approach and mindset by incorporating sustainability and digitalization into their long-term strategies, to align with consumers demands and new regulatory requirements. As a result, Bain-Altagamma analysis sets out two scenarios, with sales growth in the personal luxury goods market set to be between 3 to 5% or 6 to 8% (at constant exchange rates), depending on the strength of economic recovery in China and the ability of the US and Europe to withstand economic headwinds. Uber-luxury jewelry outperformed globally, as did iconic pieces and lines. In 2022, the luxury market generated positive growth for 95% of brands. The global luxury goods industry overall is projected to achieve a market value of some 1.4 trillion in sales revenue this year, growing by 21% from 2021 (at current exchange rates), according to the latest Bain & Company report with Altagamma, the Italian luxury goods manufacturers' industry association. 3.0 experiences (such as virtual stores, digital shopping assistants, and ultra-luxury travel and hospitality). Lighting and living/bedroom categories benefited the most, as consumers looked for more comfort, functionality, and beauty. Across 65 cities in 40 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. The US luxury market proved very strong in 2022. DTTL (also referred to as Deloitte Global) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. The market for personal luxury goodsthe heart of the entire luxury industryenjoyed another year of strong double-digit growth. The spending of Gen Z and the even younger Generation Alpha is set to grow three times faster than other generations through 2030, making up a third of the market. Cultural relevance and evolving values ask for a new value-creation model in customer engagement. These are key findings from the 21st edition of the Bain & Company-Altagamma Luxury Study, a collaboration between Bain & Company and Fondazione Altagamma, the trade association of Italian luxury goods manufacturers. Luxury spending continued to skew toward products, with steep growth in personal luxury goods and more moderate growth in experience-based goods. Luxury goods leader LVMH increased its share of the Top 5 from 39.1% in FY2016 to 44.9% in FY2021. Just as they recently did through excellent products and human-centric engagement, they must now deal with new priorities: ESG, creativity chain, tech & data. Cision Distribution 888-776-0942 Strong cross category, generation and price growth. Together, we achieve extraordinary outcomes. The analysis notes that, even with a possible global recession next year, the impact on the industry could be different from that of the 2008-2009 global financial crisis. Womenswear and menswear grew at about the same pace. Casual categories, such as fussbett sandals and Wellington boots, are on the rise. Southeast Asia and South Korea have been excelling in both growth and future potential. Before Covid, emerging luxury brands had hope to find traction online where the power brands were reluctant to venture, but thats all changed. Market favored by positive consumption tailwinds, yet partially slowed-down by disruption across the supply chain. Solid fundamentals are set to boost the markets value to between 540 billion and 580 billion by the end of the present decade, from an estimated 353 billion in 2022a rise of 50% or more. Opinions expressed by Forbes Contributors are their own. The robust performance in 2022 suggests that growth should stay healthy for the personal luxury goods market in the medium term. *I have read thePrivacy Policyand agree to its terms. Hong Kong and Macau were weaker spots, while Taiwan slowly recovered. What Sadove sees shifting in distribution is a move toward more concession models in retail from traditional wholesale-to-retail distribution. Retail continues to dominate, while online channels are seeing a normalization in their growth. The estimated value for the whole market in 2021 is B 1.140. And it remains poised to see further expansion next year, and for the rest of the decade to 2030, even in the face of present economic turbulence, the 21st edition of the Bain & CompanyAltagamma Luxury Study, says today. from 8 AM - 9 PM ET. Monobrand stores were boosted by the willingness of customers to return to in-person shopping. Federica Levato, Bain & Company's partner and the report's co-author, said: "The speed of future market growth will depend on luxury players' strategic responses to the current crisis and their ability to transform the industry on behalf of the customer.". On the other hand, luxury cars the largest single category at 551 billion ($626 billion) will end the year at or slightly above 2019 levels. We complement our tailored, integrated expertise with a vibrant ecosystem of digital innovators to deliver better, faster, and more enduring outcomes. One can argue that the secondhand luxury goods buyer isnt the same as the primary market buyer. Our 10-year commitment to invest more than $1 billion in pro bono services brings our talent, expertise, and insight to organizations tackling todays urgent challenges in education, racial equity, social justice, economic development, and the environment. Although there will never be another China in terms of growth contribution to the industry, new markets (such as India and emerging Southeast Asian and African countries) have significant potential, assuming their luxury shopping infrastructure can evolve quickly enough. Recent studies Altagamma Studies archive There will be some changes in the growth in luxury spending by nationality. Please read and agree to the Privacy Policy. Across 63 offices in 38 countries, we work alongside our clients as one team with a. Young and affluent Chinese Gen Z consumers find local brands much more aspirational and desirable than millennials or Gen Xers, he wrote, as he observes the native Gen Z consumers are exceptionally proud of their Chinese culture heritage and its future potential. Even in the face of recessionary conditions expected across leading economies into 2023, the Bain and Altagamma analysis forecasts further expansion in sales and market value for luxury goods through the coming year and decade. The growth was fueled by the greater emphasis consumers have been placing on their home lifeas both shelter and source of self-definitionsince the pandemic. All segments gained momentum, but only luxury hospitality and cruises havent yet closed the gap with pre-Covid levels. Sparkling wine (and not just Champagne) gained share over still. From insights to the performance of the market, through estimates for the approaching us 2022, all the way up to some key recommendations this study contains data no one from the Luxury Goods industry should overlook. Growth was steady across regions as people finally realized travel ambitions previously blocked by Covid, using money they couldnt spend on trips during the pandemic. Consumer expectations for service levels are rising too, with brands embracing direct-to-consumer models to create a more luxurious shopping experience at every stage. Clear overperformance driver: the focus will be on local customers, exposure to China, multi-touch and price value proposition these will be the top drivers of resilience. The personal luxury goods industry, in particular, saw a further growth acceleration this year, coming on the heels of the V-shaped rebound enjoyed in 2021, the research shows. All personal luxury goods categories have now recovered to 2019 levels or better, with hard luxury, leather, and apparel leading the resurgence following the pandemic. Interestingly enough, the pandemic caused this market to experience its worst dip in history. All luxury categories have now recovered to 2019 levels or better, with hard luxury, leather and apparel leading the resurgence following the pandemic. The second-hand luxury market, valued at $38 billion, is now also worth luxury's attention, as it is growing more than twice as fast as first-hand luxury. Overall, we estimate that in 2022 the luxury markets overall retail sales value grew by 19%21% to 1.38 trillion, or 8%10% above 2019 levels. Worst dip in history for the personal luxury goods market: Personal luxury goods are items like jewelry, luggage, haute couture clothing, sports cars and more. A deliberate (and effective) 'elevation strategy' has driven a progressive price increase across the industry (driving around 60% of the 2019-2022 growth) without damaging volume growth. More troubling is they are expected to continue on a downward curve through 2025 when they will hold only between a 10% to 12% share each. This provides both opportunities as well as potential threats to brand, fashion platforms and investors. While US luxury market is still strong, and Europe managed to recover beyond 2019 thanks to solid local demand alongside an extra-boost from US and Middle Eastern tourist shoppers, new markets are surprising the industry. Retailers have seen a decrease in footfall amid a recent surge in COVID-19 cases across the UK due to the Omicron variant. All markets fared well throughout the year, aided by healthy domestic demand and the return of tourists from the US and Middle East. Luxury is back to the future is the title of the latest market study worldwide by Bain Altagamma. Please enable JavaScript to view the site. Get the latest business insights from Dun & Bradstreet. This is, in part, driven by a more precocious attitude towards luxury, with Gen Z consumers starting to buy luxury items some 3 to 5 years earlier than Millennials (at 15 years-old, versus at 18-20), and Gen Alpha expected to behave in a similar way. Stay ahead in a rapidly changing world. This is a BETA experience. Across 65 cities in 40 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. Bain and Company and the Italian trade association Fondazione Altagamma are out with their 2021 study of the global luxury market. Now more than ever, the industry is facing paradigm shifts in all areas: production and resources, life cycle, customer relationships, corporate responsibility, and globalization. Local consumptions impacted by the slow vaccine adoption. Demand for personalization and digital connectivity rose. Fine art market rebounding thanks to gradual reopening of public auctions and art fairs. International travel disruptions, duty-free opportunities, and digitalization continue to strengthen domestic spending in 2021. Consumers overindulged on products, but the willingness to go back to experiences is at an all-time high we can read in the report. Solid rebound, polarized between entry prices and tops items. High-end brands want to control their own destiny and how they appear and are presented in the store, he says, adding, So we are not going to move away from department stores but change the economic relationship they have with them to concessions.. With 2022 already knocking on our doors, its time to step into another year full of new and interesting trends, figures and actions for the Luxury Goods market. We expect that the growth of new types of activities, often powered by technology, will result in an additional 60 billion to 120 billion of luxury industry sales. Meanwhile, China, which remains crucial to the long-term future of the luxury market, was challenged due to Covid lockdowns, and sales are likely to be down vs. 2021. Bain & Company recently released its 20 th annual Luxury Study, which underlines the resurgence in the global luxury market in 2021 after a contraction in 2020.

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