São Paulo – The global market of luxury goods should end the first four months of this year with a reduction of 15% to 20%. The percentage is shown in the Luxury Goods Worldwide Market Share, by company Bain & Company, a consultancy that is present on four continents. The sector should generate a turnover of US$ 153 billion, against US$ 170 billion in the same months last year.
The research shows that the market should stabilise in the second half of the year, but that there should still be a reduction of 10% this year. Bain estimates sales dropping 15% in the Americas and 10% in Europe and Japan. The three are the main markets for luxury products in the world, with 80% of the total. The consumption of China should grow 7% and in the Middle East, 2%.
"Consumers of luxury products are spending less, travelling less and feeling less confident. Producers are also feeling the reflexes of great pressure and reduction of prices at luxury shops," said the author of the study, Claudia D’Arpizio, a partner at Bain and a specialist in the luxury market.
The garment sector should suffer the greatest impact, with 15% lower sales. Trade of watches and jewels may drop 12% and leather, shoes and accessories, 10%. The consumption of cosmetics and perfumes should remain stable, according to the study. Claudia says that consumers tend to opt for cheaper articles, but remain faithful to the brand, in recession periods like the current one.
According to the executive, however, this market has good perspectives in the long run. That is because new consumers should enter it. Among them are executives, younger generations with new tastes and styles, and men who are more prepared to buy themselves presents. The number of high-income consumers, over US$ 1.5 million a year, should grow 6% in China this year.
*Translated by Mark Ament
