- Marjorie van Elven |
The global personal luxury goods market is expected to grow 6 to 8 percent in 2018, according to a report by market monitor Altagamma and management consulting firm Bain & Company. Leather accessories and jewelry are the product categories expected to grow the most (7 percent), while apparel is expected to grow at a slower rate, at 4 percent. Total sales for the personal luxury goods market are estimated to reach 276 to 281 billion euros in 2018, and 390 billion euros by 2025.
According to the study, Asian markets will drive this growth, as Asian consumers are forecasted to spend 12 percent more on luxury items this year. North America comes second, with an estimated growth of 6 percent, followed by Japan (5 percent). The report emphasizes the rising confidence of Chinese consumers, both at home and abroad, in particular.
Altagamma and Bain & Company also expect sales of personal luxury goods to get a boost from social media shopping, particularly among younger generations. Instagram and Pinterest are already experimenting with in-app shopping.
Finally, the report predicts spending in casual clothing and streetwear to accelerate in 2018, thanks to the “athleisure” trend that has prompted couture labels to launch items such as sneakers and sweatshirts. The study also forecasts the personal luxury goods market to enter a “post-aspirational” era, in which self-expression through style will become more important than exclusivity.
Luxury companies are advised to adopt a “millennial state of mind”, as “younger consumers will dictate the rules of the market going forward”.