Conditions have never been more challenging for luxury brands, according to Fflur Roberts, Head of Luxury Goods at Euromonitor International.
“Headline growth remains disappointing, and the markets overall face mounting risks — it's clear nothing is written in stone,” Roberts explained in a recent video highlighting the latest market research on the global luxury goods industry.
Uncertainty reigns in the US, the UK, and France. Hong Kong’s slowdown continues to reverberate throughout Chinese markets, while on-going political issues in the Middle East dampen sales of luxury goods.
Despite these headwinds, sales grew about 3% in 2016 to reach $380 billion US dollars.
“While 2017 will not be a stellar year overall for the industry, we will see some tailwinds with markets such as India, in particular, and Mexico showing much stronger sales and in much stronger positions,” she noted.
In the coming year, marketers will make a massive push towards luxury branding and luxury experiences through both restaurants and hotels. The rise of the digital consumer and the millennial generation will also help drive up sales.
But the biggest story of 2017 may be China’s increasing luxury sales. Analysts are closely watching a power shift from the West to the East.
“Our latest data shows that China will actually move to number one — it’s currently placed at number two in the world — overtaking the US to become the world’s biggest luxury market,” Roberts said.
Access the Latest Market Research
Interested to learn more? Euromonitor International publishes a wide variety of market research reports on the luxury goods industry. Here’s a selection of recent reports available on MarketResearch.com.
- Luxury Goods in the United Arab Emirates
Get a detailed understanding of the luxury goods market with this new report. Use this research to identify growth sectors and understand the competitive environment in the United Arab Emirates.
- Luxury Goods in the US
This market research report provides a comprehensive guide to the luxury goods market in the US, providing the latest sales data and consumer shopping patterns.
- Luxury Goods in China
Read strategic analysis of key factors influencing the luxury goods market in China. Product coverage includes designer apparel and footwear, fine wines, leather goods, timepieces, and much more.
On MarketResearch.com, you can find 920 different market research reports on the luxury goods industry published by Euromonitor International. Contact our research specialists if you need help finding the right report or want more information.
About the Author: Sarah Schmidt is a Managing Editor at MarketResearch.com, a leading provider of global market intelligence products and services.