The forecast reflects continued strength in Japan, solidity in southern Europe and a progressively improving trajectory in the United States, but also a rapid slowdown in China and challenging conditions in South Korea, an article on the Bain website noted.
The strongest category growth globally was found in beauty and eyewear. Jewelry was the most resilient core luxury category. Shoes and watches struggled.
The global personal luxury goods market is likely to dip by 2 per cent to $381.74 billion this year, the latest Bain & Company Luxury Study found.
The forecast reflects continued strength in Japan, solidity in southern Europe and a progressively improving trajectory in the US, but also a rapid slowdown in China and challenges in South Korea.
Longer-term market growth should be solid, Bain noted.
The tighter conditions are polarising the market. The study estimates that only about a third of luxury brands will emerge from 2024 with positive growth—down from two-thirds a year earlier—with many brands suffering a drop in their revenue.
In this context, pressure on profitability is mounting, setting the scene for an increased focus on performance improvement and technology next year.
Longer-term market growth should be solid, thanks to anticipated increases in wealth and the luxury consumer base.
Unlocking that growth will require clarity in strategy and execution, the Boston-headquartered management consulting company added.
Fibre2Fashion News Desk (DS)