Bain & Co. forecasts 5 to 12% growth for the luxury market in 2023
Bain & Company predicts a 5 to 12% growth for the luxury market in 2023, despite geopolitical tensions. Future challenges include adapting to environmental standards and integrating artificial intelligence.
By Eva Morletto28 juin 2023
In its report released on June 23rd, Bain & Company foresees a promising future for the global luxury sector. According to their "Luxury Goods Worldwide Market Study" - Spring 2023, conducted in collaboration with Altagamma, a global growth of 5% to 12% is projected for 2023, reaching a market value between $393 billion and $415 billion. Market uncertainties related to geopolitical tensions are not expected to be a significant deterrent for the industry.
The previous year already showcased impressive results, with the global luxury market reaching a value of $376 billion. Several factors contributed to maintaining this growth momentum in 2023, including the reopening of China after the Lunar New Year, the recovery of Chinese and Russian tourism in Japan and Southeast Asia, a rebound in consumer confidence among Europeans, and a notable decrease in the hyperinflation that had previously disrupted the global economy, particularly in Europe and the United States.
The report highlights that the most successful categories were watches, high-end jewelry, and iconic handbags from luxury houses like Louis Vuitton, Chanel, and Hermès. Cosmetics and high-end fragrances also showed remarkable growth.
In terms of geographical regions, Asia stands out with a highly dynamic market, particularly in Japan and Southeast Asia, while American consumers remain cautious due to the potential threat of a recession. On the other hand, Europe will have a better assessment of its annual results after the summer holiday period, where tourism will play a crucial role in determining the revenues of major luxury brands.
New challenges await luxury industry players, including adapting their production to environmental and social requirements by implementing measures to ensure reliable product traceability. Additionally, the role of artificial intelligence-related technologies in production chains, marketing, sales strategies, and communication will need to be evaluated. According to Bain & Co., by 2030, the luxury market could reach figures 2.5 times higher than in 2020, with a value ranging between $580 billion and $634 billion.
De nouveaux défis attendent les acteurs du luxe, notamment l'adaptation de leur production aux exigences environnementales et sociales, en multipliant les dispositifs visant à assurer une traçabilité fiable des produits. Ensuite, il faudra évaluer le rôle que les technologies liées à l'intelligence artificielle pourront jouer dans la chaîne de production, le marketing, les stratégies de vente et la communication. Selon les estimations du cabinet Bain & Co., d'ici 2030, le marché du luxe pourrait atteindre des chiffres 2,5 fois plus importants qu'en 2020, pour une valeur située entre 580 et 634 milliards de dollars.
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