The global market for luxury items, such as clothing, footwear or jewelry, expects to grow up to 8% in sales for reach 380,000 million euros in 2023, according to the latest study by Bain & Company, prepared for the Italian association Fondazione Altagamma, which, together with Círculo Fortuny and the main European associations, forms part of the European Cultural and Creative Industries Alliance.
Nevertheless, the report handles two scenarios for 2023, one optimistic with the aforementioned 8% growth, and another moderate with an increase of 5% compared to 2022, which would leave sales at 360,000 million euros.
The difference is made, mainly, by China, due to the restrictions due to the coronavirus, from which millions of people in the country have been infected again in recent days.
With the unknown of what could happen in the Asian giant, it will be the European and American markets that, according to the report, will drive the growth of purchases of luxury items.
The numbers shown in the report show that the luxury sector is weathering the inflationary threat from this same year. In fact, it is expected that 2022 will end with sales worth 353,000 million, compared to 290,000 million in 2021.
Bain & Company maintains in its publication that even a possible global recession next year would be different from the crisis that occurred in 2008 and 2009, which had a notable impact on high-end consumption. On the contrary, today there is a renaissance of luxury that allows you to grow even in times of great uncertainty.
By region, the region that will experience the greatest growth is Asia, with the exception of China, spurred on by the “excellent” performance of South Korea. The turnover of the Asian high-end market in 2022 will grow 43% year-on-year, compared to 27% in Europe, 25% in America or 18% in Japan.
The report also pays special attention to the Indian market, the one with the greatest potential, as it is the fourth country with the most billionaires on the planet. Indian consumer spending on luxury is expected to grow 3.5-fold by 2030.
As for Europe, it exceeds the levels of 2019, mainly due to the boost in local luxury consumption, but also due to international tourism, mainly from the United States and the Middle East. High-end spending in the old continent carried out by American consumers has multiplied by 2.3 compared to the year before the pandemic and their preferred destinations are Italy and France.
