Global sales of personal luxury goods are forecast to contract for the second straight year, as well-heeled shoppers rebel against extravagant price hikes on ho-hum offerings and global turmoil shakes confidence, according to a new study by the Bain & Co. consultancy released on Thursday.
Sales of high-end apparel, footwear and handbags are expected to drop 2% to 358 billion euros ($412 billion) this year from 364 billion euros in 2024, Bain said in its semiannual market update for the Altagamma association of Italian luxury producers.
The dip would mark the first two-year slowdown since the 2008-09 global financial crisis.
“It is not a disaster scenario, yet you see consumers are trading down to accessible brands, not because they don’t have the money but because I think they are looking for something that is more ethical in the value-price proposition,’’ said Bain partner Claudia D’Arpizio, who co-authored the study.
Post-pandemic
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