Lauren Decicca | Getty Images News | Getty ImagesThe personal luxury goods market looks set to face its first slowdown since the Global Financial Crisis this year, as macroeconomic uncertainty and a pronounced slowdown in China weigh on consumer spending, according to the Bain & Company's annual luxury report .
This is the first slowdown in demand for personal luxury goods — which include clothing, bags, jewelry and cosmetics — in 15 years, excluding the Covid-19 lockdown period, according to the Wednesday findings.
It noted that overall luxury spending is forecast to remain flat year-on-year in 2024 at around 1.5 trillion euros ($1.59 billion), even as segments including autos, travel and fine wine record modest growth.
Luxury demand in Europe and the U.S. has shown signs of gradual improvement quarter-on-quarter this year, with Japan leading the way due to favorable currency exchange rates.
As such, the report forecast the sector will grow slightly next year, barring any major economic headwinds.
Persons:
Patek Philippe, Lauren Decicca, Kering, Cartier, Richemont, Bain
Organizations:
Dolce, Gabbana, Tiffany, Getty, Bain, LVMH, Burberry, Gucci, Bain & Company, U.S
Locations:
Siam, Bangkok, Thailand, China, Europe, Japan