2017.05.31 K.media: Luxury to rebound

A new report released by Bain & Company in partnership with Altagamma predicts an increment in the luxury industry this year. Thanks to a rise in tourism in the former and lower prices in the latter, the key growth markets will be Europe and China (where this field had been hampered by a slowing economy as well as in the European countries).

According to the report, global sales in the personal luxury sector will grow later in 2017 to between €254 billion and €259 billion, a 2% to 4% increase from €249 billion in 2016.

In particular, there are 3 main factors behind these esteems: 1) the resurgence in Chinese consumer spending (both at home and abroad), 2) a new appreciation of tourism in Europe and 3) the efforts by luxury brands to identify and respond to the tastes of “millennials”.

While China and Europe are rebounding, the combined problems of slumping department store sales and less tourism in America (in parallel with Trump’s election) are expected to cause a downturn.