The report notes that while global sales of personal luxury goods are slowing down, it is not collapsing
Highlighting that personal luxury goods sales eroded to USD 419 billion in 2024, a study by Bain and Co consultancy noted that they are projected to dip by another 2 to 5 per cent this year, AP reported.
However, the report noted that while global sales of personal luxury goods are slowing down, it is not collapsing. The report attributed the slowdown to threats of United States (US) tariffs and geopolitical tensions triggering economic slowdowns.
In addition to the external headwinds, sharp price increases and creativity crisis have also taken a toll. The report noted that sales are on a downward trajectory in the US and Chinese markets. Consumer confidence in the US has been impacted due to tariffs.
The report emphasised that China has reported continuous quarters of contraction due to low consumer confidence. However, the Middle East, Latin America and Southeast Asia are witnessing growth, while Europe is mostly flat.
To minimise the impact of possible US tariffs, the brands are making changes like shipping directly from production sites and not warehouses and reducing stock in stores. The report noted that while luxury spending is sensitive to global turmoil, it is quick to respond.
