The luxury sector faces significant uncertainties, with consumption in China declining, leading to a global downturn for brands from France and Italy. Economic challenges like Trump's tariff war and rising inflation have affected demand, resulting in the loss of 50 million consumers in two years. According to Bain Company and Altagamma, the luxury market shrank to 350 million consumers in 2024, with a slight spending decline. Personal luxury goods saw their first contraction in 15 years, primarily influenced by price-sensitive Generation Z consumers, prompting downward revisions for 2025 sales forecasts.
The luxury sector is facing uncertainty with a decline in China’s consumption, exacerbated by economic issues like inflation and rising prices, affecting global brands.
Fifty million luxury consumers have disappeared in the last two years, marking a significant downturn in a sector that once thrived during the pandemic.
Personal luxury goods saw their first decline in 15 years, driven by a drop in demand from price-sensitive Generation Z consumers.
Experts indicate that the luxury industry may be in a phase of stabilization, leading to downward revisions of forecasts for sales in 2025.
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