“Consumption doesn’t seem to be affected so far,” Bain partner
Claudia D’Arpizio told Reuters in an interview.
Bain estimates that global sales of personal luxury goods will
reach at least 305 billion euros ($320 billion) this year,
according to its most conservative estimate — and up to 330
billion euros in a more optimistic scenario — building on its
fast rebound from pandemic lockdowns. This compares with a
previous estimate for 300 billion to 310 billion euros.
Bain widened its projections to account for strong current
sales, said D’Arpizio, despite a wobbly stock market in the
United States and concerns about an economic recession.
“We are aware that we are in a very turbulent environment,” she
said.
Analysts at Bain said global sales of personal luxury goods,
which include clothing, accessories and beauty products, reached
288 billion euros last year, surpassing a previous forecast for
283 billion due to strong spending over the holidays.
Even with high inflation and disruptions from COVID-19 lockdowns
in mainland China, luxury firms tapped into local demand in
Europe and the United States with effective marketing.
“We were for sure astonished,” by resilient consumer confidence
despite inflation, D’Arpizio said.
Domestic spending from Chinese consumers will likely recover
through the second half of the year, according to Bain, which
also highlighted South Korea as a booming market.
The United States overtook Europe as the largest luxury market
last year, Bain said in a previous report.
($1 = 0.9522 euros)
(Reporting by Mimosa Spencer; editing by Jonathan Oatis and
Jason Neely)
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