The global luxury goods market sales will reach 360 billion to 380 billion euros in 2023 | Luxury | Global
Bain Company released a mid year update report on the global luxury goods industry for 2023 yesterday, which showed that the global luxury goods market sales reached 345 billion euros in 2022. It is expected to further increase by 5% -12% on this basis in 2023, reaching 360 billion -380 billion euros. By 2030, global luxury goods sales are expected to reach 530 billion to 570 billion euros, approximately 2.5 times that of 2020.
In the first quarter of this year, driven by various factors such as easing inflation, restoring cross-border travel, and restoring confidence among local European consumers, the global luxury goods market actively developed. Among them, the mainland Chinese market resumed growth in the first quarter and is expected to rise again this year. At the same time, Japan has become a rising star in the Asian luxury goods market, as evidenced by the unwavering enthusiasm of local customers for consumption and the strong pursuit of popular jewelry by inbound tourists. In Europe, due to strong empowerment from top customers, the luxury goods market achieved a strong start at the beginning of this year and continued to perform well in the first quarter.
Research has pointed out that since 2023, with changes in consumer preferences, the global luxury goods industry has entered a new stage: on the one hand, consumers are eager to show that the purpose of purchasing luxury goods is not to show off or showcase their status, but to express their uniqueness; On the other hand, with its scarcity and long-term appreciation ability, classic luxury goods are still sought after by consumers.
Xing Weiwei, Global Partner of Bain Company, stated that the sales data in the luxury goods market in the first half of this year means that although many newcomers have performed outstandingly, the entire industry is still controlled by giants. These brands not only have a glorious past, but also continue to succeed. In order to maintain a long-term competitive advantage, brands should adopt a new challenger attitude - promoting their flagship products while upholding the founder's spirit, and establishing a solid business foundation to maintain long-term growth.
In recent years, with the upgrading of consumption in mainland China, many local Chinese brands have begun to shape the image of luxury goods. How can Chinese new energy brands break through the "moat" already built by established luxury brands in Europe and America?
Bruno, Senior Global Partner of Bain Company, suggests that new power brands should focus on adjusting their strategies around four aspects: first, comprehensively focus on all consumers, whether they are local customers or tourists; Secondly, reasonable consideration should be given to exposure and promotion in different countries and regions; Thirdly, upgrade the value proposition and optimize the service and experience for entry-level customers; Fourthly, continue to promote popular, classic, and personalized boutiques.