The luxury industry has spread all over the world over time. This market generates billions of dollars each year, particularly in Europe and Asia.
But thanks to the exit of the covid and has new countries which impose themselves in this industry, the turnover by 2025 will reach 400 billion dollars.
Impressive turnover for early 2022
According to the consulting firm, Bain & Company, the luxury goods market currently represents 303 billion dollars worldwide.
This astronomical sum was reached in particular thanks to purchases for the end-of-year celebrations in 2021.
Indeed, the end of year celebrations of the previous year were the first that we could spend with family since the covid invaded our planet.
The luxury goods clientele then caught up with previous years when consumption had fallen.
The 2021 holiday season proved successful in several regions, reflecting a 7% increase over the same period in 2019.
The most purchased products are clothing, watches, jewelry and eyewear.
In the first quarter of 2022, the personal luxury goods market grew by 17-19% at current exchange rates, compared to the same period in 2021.
This major boom is mainly due to the consumption of luxury goods in Europe, but also in China.
In a press release, a partner at bain et Company, Claudia D’Arpizio, explains the rise in turnover in the luxury market despite recent tragic events:
“Despite significant macroeconomic challenges, including hyperinflation, slowing GDP growth and the Russia-Ukraine conflict, the personal luxury goods market has proven resilient once again.”
“Luxury goods brands started this year showing particularly strong growth while playing a leading role in the sustainable and digital transformation taking place around the world.”
The new countries that bring a lot to the luxury industry
But that’s not all, the United States plays an important role in this development thanks to its integration effort. Some brands based in the United States have revisited luxury by adapting their products to all body types and skin colors, which encourages customers to identify more with brands, and therefore to consume more.
This is also the case of South Korea, which has not necessarily disrupted the market, but which is experiencing growing demand from its population.
According to studies by Bain & Company, the growth of this market is so strong that by 2025, it will generate a turnover of 400 billion dollars.
The web universe
But brands are looking beyond 2025 and in order to grow their businesses, some are looking at the web market and trying to develop their technological aspects as much as possible.
This is the case of the Italian luxury house Gucci which recently launched “The Vault Art Space” and its first exhibition and online auction, “The Next 100 Years of Gucci”. These projects were created in collaboration with NFT SuperRare.
China under threat
However, it is possible that the luxury industry will not reach this sum in 2025 due to the invasion of Ukraine by Russia and the consequences that this will generate.
Indeed, China may provide aid to Russia, which would push the luxury industry to boycott the two countries.
China, which is a considerable contribution to this market, will be deprived of the consumption of luxury products, which could considerably slow down the growth of this market.
China has recently received threats from the United States regarding favorable actions towards Russia.
Whatever China does, it will sacrifice either its good relations with Russia or its considerable contribution to the luxury market.