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The fastest growing categories will be shoes, bags and jewelry, said Bain & Co. Sustained growth is also expected in the skin care and makeup segments, which partially compensates for the moderate sales of perfumes. Clothing sales are expected to stagnate.
The paper highlights a number of megatrends that will shape further luxury consumption in the world. Chinese generation Z (born in the Internet era) will enter the market. These people will become the most prominent customers who make impulse purchases, and their mood will have a significant impact on the market. Generations Y (the so-called millennials) and Z will account for over half - 55% - of all global spending on luxury goods by 2025, analysts at Bain & Co indicated in a report on the results of 2018.
Digital technologies will be actively developed. By 2025, online sales will have a quarter of the market versus 10% in 2018, Bain & Co. wrote earlier.
In general, the growth of the market can primarily be explained by an increase in demand from Chinese consumers. According to the forecast of Bain & Co, in 2019 the growth in sales of luxury goods in mainland China will reach 18–20%. By 2025, share of Chinese buyers will exceed 45% of the global luxury goods market, with half of the purchases made in mainland China. Last year, the figure was 33%.
Sales of luxury in North and South America will grow by 2-4%. The real discovery could be Japan, whose market “remains exclusive and attractive for luxury brands”, with a projected growth of 2–4%, Bain & Co. writes. Travel expenses are expected to increase on the eve of the Summer Olympics in Tokyo in 2020, again at the expense of Chinese consumers.
source: bain.com
The paper highlights a number of megatrends that will shape further luxury consumption in the world. Chinese generation Z (born in the Internet era) will enter the market. These people will become the most prominent customers who make impulse purchases, and their mood will have a significant impact on the market. Generations Y (the so-called millennials) and Z will account for over half - 55% - of all global spending on luxury goods by 2025, analysts at Bain & Co indicated in a report on the results of 2018.
Digital technologies will be actively developed. By 2025, online sales will have a quarter of the market versus 10% in 2018, Bain & Co. wrote earlier.
In general, the growth of the market can primarily be explained by an increase in demand from Chinese consumers. According to the forecast of Bain & Co, in 2019 the growth in sales of luxury goods in mainland China will reach 18–20%. By 2025, share of Chinese buyers will exceed 45% of the global luxury goods market, with half of the purchases made in mainland China. Last year, the figure was 33%.
Sales of luxury in North and South America will grow by 2-4%. The real discovery could be Japan, whose market “remains exclusive and attractive for luxury brands”, with a projected growth of 2–4%, Bain & Co. writes. Travel expenses are expected to increase on the eve of the Summer Olympics in Tokyo in 2020, again at the expense of Chinese consumers.
source: bain.com
