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Despite a year marked by geopolitical tensions and economic uncertainties, the global luxury market showed remarkable resilience in 2023, surpassing €1.5 trillion in value, says latest Bain-Altagamma Luxury Goods Worldwide Market Study. This growth, estimated at 8-10 per cent at current exchange rates, underscores the enduring allure of luxury goods and experiences, even in the face of adversity. "The luxury market has once again proven its resilience in the face of global headwinds," says Claudia D'Arpizio, a Bain & Company partner and lead author of the study. "Brands that adapt to the evolving consumer landscape and embrace innovation will be well-positioned for success in the years to come."
Year 2023 growth lead by, personal luxury goods
Strong overall growth: The luxury market, encompassing nine segments including luxury cars, personal goods, hospitality, and fine wines & spirits, reached €1.51 trillion in retail sales value, a 11-13 per cent increase at constant exchange rates.
Personal luxury goods lead the way: This segment, which includes fashion, accessories, and beauty, is projected to reach €350-360 billion in 2023, driven by continued demand for high-end products.
Experiences gain traction: Luxury hospitality and cruises witnessed significant growth, highlighting the rising desire for exclusive and memorable experiences.
China's resurgence: After a period of subdued growth, the Chinese market rebounded strongly, contributing significantly to the global luxury market's expansion.
Evolving consumer landscape: Younger generations, particularly Gen Z and Millennials, are playing an increasingly important role in shaping the future of luxury consumption
US slowdown: Luxury spending in the US has fallen due to economic concerns, while Europe benefited from a resurgence in tourism.
Polarization deepens: The luxury market is increasingly polarized, with top-tier consumers driving a significant portion of growth.
Luxury majors' performance
The study also highlighted the recent performance of leading luxury groups.
Table: Top luxury retailers revenue growth
|
Company |
Revenue growth 2023 (YoY) |
Key highlights |
|
LVMH |
17% |
Strong performance across all divisions, particularly fashion and leather goods. |
|
Kering |
15% |
Gucci's turnaround strategy showed positive results, with growth accelerating in the second half of the year. |
|
Hermès |
29% |
Continued strong demand for iconic products like Birkin and Kelly bags. |
|
Richemont |
19% |
Jewelry maisons and specialist watchmakers drove growth. |
Factors shaping the luxury market
The current state of luxury market is a reflection of several key factors that are at play. It is evident that consumers are increasingly drawn to brands with rich history and strong values, seeking authenticity and craftsmanship. Meanwhile the focus is shifting from material possessions to unique and personalized experiences, such as bespoke travel and exclusive events. No wonder luxury brands are embracing digital channels to enhance customer engagement and provide seamless shopping experiences. Moreover, consumers are increasingly conscious of the environmental and social impact of their purchases, driving demand for sustainable and ethically sourced luxury products.
Then there is the China factor. China's resurgence as a key growth driver for the luxury market is undeniable. After a period of slowdown due to the pandemic and regulatory changes, Chinese consumers are once again driving sales, both domestically and abroad. The Bain-Altagamma study estimates that China will account for 40-45 per cent of the global luxury market by 2030. Looking ahead, the global luxury market is expected to continue its growth, albeit at a more moderate pace. The study projects a 3-5 per cent annual growth rate at constant exchange rates, reaching €430-460 billion by 2030. Key trends shaping the future of luxury include:
Are Q3 sales dip reflection of future?
Interestingly, despite Bain’s optimistic forecast, top luxury retailer LVMH reported a fall in its Q3 sales fashion and leather goods division. The results reported last week revealed a 5 per cent YoY fall in sales. Overall group revenue fell 3 per cent to $20.8 billion in the three months to September 30 compared to the same period last year. The reason for this dip is growth cooling across Japan, due to yen’s weakness and sluggish spending in China. LVMH’s sales in Asia outside Japan fell 16 per cent YoY in Q3, while the US, the biggest luxury market, remained stagnant.
Indeed LVMH’s results do not indicate a positive picture for Kering and Hermès earnings as well whose results are expected soon. The former had already recorded a lackluster first half. LVMH’s results are the latest blow to the global luxury segment that is facing headwinds due to weak macro environment. Concerns are increasing among luxury players and brands need to be ready for some cooling in the near future.
Marking its debut in the Saudi Arabia market, Adidas hosted its first fashion show in the country on Oct 16, 2024. Organised in partnership with Saudi fashion label Kaf by Kaf – a part of Saudi 100 brands initiative, the fashion show launched the brand’s Spring-Summer 2025 Sportswear Collection.
Designed by Kawthar Alhoraish, the creative force behind Kaf by Kaf, the collection blends Saudi Arabia’s traditional clothing with contemporary athletic style. It emphasises on versatility of the collection’s unisex pieces, inspired by iconic garments such as abayas and headscarves.
Incorporating modern elements yet maintaining the essence of traditional designs, the collection offers a stylish range from comfortable loungewear to performance attire. Some of the highlights of this collection include the Football-Inspired blokecore tee, featuring a bold adidas sportswear graphic and a premium flat knit rib collar, capturing the playful spirit of self-expression and experimentation.
One of the outstanding pieces of this collection includes the Classic track top with its vibrant all-over print and classic ribbed details, making it a versatile staple for any wardrobe. This top is complemented with the classic track pants featuring cargo pants and zipped side pockets, thus blending comfort with modern aesthetics.
Offering a full coverage, the elongated cover-up abaya with an open-front design, blends solid color panels with vibrant prints and classic the stripes adidas branding. The collectionalso offers a lightweight headscarf made from light materials for a comfortable fit, and a long dress featuring a sporty flat knit V-neck collar, racerback design, and convenient side seam pockets.
Sharing his excitement over the collection’s lunch Bilal Fares, Senior Vice President and General Manager, adidas EMC, says, the brand’s partnership with Saudi Fashion Commission and Kaf by Kaf reiterates its strong commitment to continuously empower local talent within the Kingdom. The brand looks forward to creating more localised products for its consumers.
Kawthar Alhoraish, Founder and Designer, Kaf by Kaf, adds, a celebration of the brand’s shared values—creativity and heritage, the collection adds a contemporary twist to sportswear. More than just fashion, it focuses on creating pieces that embody the spirit of Saudi Arabia, blending style, comfort, and cultural identity seamlessly.
The collection will be available for purchase in Feb 2025 across select adidas stores and sites globally.
Bed Bath & Beyond and The Container Store have entered into a strategic partnership to offer both these brands at the same location to improve their customers’ experience.
Through this partnership, Bed Bath & Bath will invest $40 million in The Container Store to showcase and sell its products in 102 of its locations.
A home goods retailer, The Container Store specialises in organisation solutions products and in-home services. On the other hand, owned by Beyond Inc, retail chain Bed Bath & Beyond sells home goods, including housewares, furniture, home decor, and more
Both these retail giants have very similar target audiences, making this new alliance a strategic business move to leverage growth, store traffic, and profitability for the two brands.
Additionally, the partnership also aims offer a global loyalty program consisting of multiple payment plans and options, as well as product insurance.
Going beyond physical stores, the partnership between both retailers will also enable the Container Store to join Beyond's data platform to enhance customer analytics in both brands. This will allow the company to expand its reach across its combined network and leverage Beyond’s e-commerce expertise to further its own omnichannel tools and capabilities, says Satish Malhotra, CEO, The Container Store.
After over 50 years of business, Bed Bath & Beyond filed for Chapter 11 bankruptcy in April last year and was forced to close all its existing stores. At the time of the filing, the company had 360 Bed Bath & Beyond stores and 120 buybuy Baby locations.
To exit bankruptcy and continue with operations, Bed Bath & Beyond obtained a $240 million loan. In June 2023, the company was acquired by online home goods retailer Overstock through a winning bid sale for $21.5 million, which it paid fully in cash. The transaction excluded Bed Bath & Beyond's brick-and-mortar business and the buy buy Baby brand.
This acquisition ended all physical Bed Bath & Beyond locations and made the brand a fully online retailer.
Overstock changed its company name in November 2023, and it is currently known as Beyond Inc.
Boohoo is considering a major restructure, potentially offloading brands like Debenhams and Karen Millen as it battles financial woes. The online fashion retailer, which also owns PrettyLittleThing, said its business remains ‘undervalued’ and is reviewing strategic options.
Despite a pandemic-era online shopping boom, Boohoo has since faced stiff competition from fast-growing rivals like Shein and Temu. Analysts suggest Boohoo may focus on younger audiences by selling off Debenhams and Karen Millen, with investment director Russ Mould stating, ‘The break-up of Boohoo has begun.
Retail expert Catherine Shuttle worth highlighted the shift towards sustainability as another challenge for fast-fashion companies. Boohoo acquired Karen Millen for £18.2m in 2019 and Debenhams for £55m in 2021, but these brands have struggled to make a significant impact online.
The company also admitted to declining sales of youth-focused brands like boohoo.com and PrettyLittleThing. Additionally, Boohoo CEO John Lyttle is set to leave after six years at the helm.
Boohoo has faced scrutiny over ethical practices, exposing unfair supplier pressure. The company recently reported a 15 per cent drop in sales, with declining performance across all regions.
Vardhman Group has partnered with Lakshmi Machine Works (LMW) to acquireits state-of-the-art machinery to optimise its textile production. The group has acquired 107 LMW Card units (100 LC 361 S and 7 LC 361), 24 Speed frame units (LF 4280 series), and 70 Ringframe units (LRJ 9/SX), alongside other LMW smart machines. This acquisition supports Vardhman’s goals of boosting efficiency, maintaining top-tier quality, and enhancing sustainability in their operations.
LMW's cutting-edge solutions align with the industry's increasing emphasis on sustainability. These machines not only improve productivity but also reduce waste and energy consumption, contributing to a more eco-friendly manufacturing process. The smart machinery integrates advanced technology for optimising resource use, minimising fiber waste, and lowering operational costs by reducing energy consumption. This allows Vardhman to strengthen its commitment to sustainable practices while meeting the global demand for environmentally responsible textiles.
Automation is central to LMW's approach, playing a pivotal role in advancing spinning innovation. The integration of automated process control, material transport systems, and intelligent maintenance significantly reduces reliance on manual labor. This enhances production efficiency, ensuring consistent quality while freeing labor for more strategic tasks. As a result, Vardhman’s operations will see increased output without compromising quality, further improving the mill’s overall productivity.
LMW’s sustainable smart solutions are designed to address the evolving needs of the textile industry, offering real-time monitoring and adjustments that boost productivity while supporting sustainability initiatives. By adopting these technologies, Vardhman is positioning itself at the forefront of industry innovation, ready to tackle future challenges with a balance of efficiency, quality, and environmental responsibility.
With LMW's machinery, Vardhman is set to lead the way in creating a modern, sustainable future for the textile industry, where automation, productivity, and sustainability work hand-in-hand.
At the upcoming Kingpins Amsterdam event on Oct 23–24, 2024, the world’s leading spandex manufacturer by market share, Hyosung will present its innovative denim textile solutions to the global denim community. As a pioneer in stretch fiber technology, Hyosung offers a wide range of options under its Creora® Spandex and regen brands, catering to the diverse needs of denim producers.
One highlight of Hyosung’s showcase will be its expanded regen BIO Spandex line, which now includes the new regen™ BIO Plus and regen™ BIO Max Spandex, both featuring a higher percentage of renewable resources. The company will also display its 100 per cent recycled, RCS-certified regen™ Spandex, made from industrial waste, alongside its Creora® Slip Free Spandex, which enhances seam stability and reduces waste. Additionally, Hyosung will introduce Creora® 3D Max Spandex, which delivers superior stretch and recovery with minimal spandex content, allowing garments to be more easily recycled, as inspired by the Jeans Redesign Project.
Simon Hong, Director of Hyosung Global Denim Marketing, emphasiseson the importance of tailoring sustainable solutions to meet the unique needs of different brands, whether they prioritise recycled, bio-based, or recyclable materials.
In addition, Hyosung will also sponsor the Kingpins Future Fits Forum. In collaboration with the Kingpins team, the brand will adorn the Kingpins Boxes display with cutting-edge apparel featuring laser-washed designs and Levi’s 501-iconic fit deadstock. On Oct 23, 2024, Hyosung will also lead a Future Fits Forum session, exploring denim fashion trends for the next five years.
Further reinforcing its commitment to the Future Fits program, Hyosung will launch a new project at the event, displaying swatch samples made with planet-friendly spandex from partner mills.
The latest financial statements of TK Maxx show, the retailer achieved record $5.22 billion sales in 2024 over the past year. Reaching a new milestone, the turnover of TJX UK, TJ Maxx’s division under the TK Maxx brand, increased by 3.6 percent during the months of Jan-Feb’24.
According to a Companies House report, the growth was driven by an uptick in foot traffic, contributing to a 3.0 percent rise in like-for-like revenues, which amounted to $3.48 billion. TK Maxx expanded its footprint by opening five ne
w stores, bringing its total to 432 locations, including TK Maxx and Homesense outlets. Despite the sales increase, the retailer’s profit declined from $192.61 million to $134.28 million, partly due to an exceptional one-time payment of US $68.9 million the previous year.
The results come after parent company, the Massachuesetts-headquartered TJ Maxx reported a 9 percent increase in net sales, reaching $54.2 billion for the year.
A fashion tech company based in San Francisco and Hong Kong, Unspun is partnering with global sports brand Decathlon. The company has developed a revolutionary 3D machine, ‘Vega’ to reduce textile waste and transform apparel production.
Unspun’s collaboration with Decathlon focuses on reducing textile waste, by utilising Vega™ technology. The initiative helps Unspunpioneer local, low-waste, on-demand production in Europe, offering sustainable solutions to mainstream consumers.
The partnership will kick off with the production of golf pants, using Vega’s seamless tubular design to improve garment construction. Walden Lam, CEO and Co-founder, Unspun believes the collaboration will help bring sustainable apparel to a larger market.
Walden Lam, Kevin Martin, and Beth Esponnette, Co-founders, Unspun share a commitment to sustainability, aiming to reduce global carbon emissions by 1 per cent. Martin emphasisedon the importance of cutting waste and inefficiency, stating, optimising production and reducing excess, presents the company with a massive opportunity for both financial gain and environmental impact.
The EU’s new recycling mandates further support Unspun's vision, requiring separate textile waste collection to keep clothing out of landfills. As more brands look to reduce waste, innovations like Unspun’s Vega™ are becoming increasingly attractive. Unspun’s partnership with Decathlon marks a key step toward a future of sustainable, efficient, and profitable textile production.
German sustainable denim brand, Dawn Denim has launchedmaiden men's collection for F/W 2024-25 in stores across the country.
The collection was launched in collaboration with the Peek & Cloppenburg Conscious Fashion Store in Berlin for this. The brand’s partnership with this store holds prominence as the store focuses on conscious consumption, says Ines Rust, Co-founder
Along with this launch, Dawn Denim is also collaborating with other menswear partners committed to sustainable trade. Among these include are German retailers including Dear Goods, Hubert und Therese, Grünschnabel and Mode Weber in Switzerland.
The new Dawn menswear collection is sold at prices that range between €139 for a pair of jeans and €159 for a jacket.
A pioneer in the field of sustainable denim, Dawn Denim was founded in 2015. The brand is committed to fair fashion production. It manufactures jeans at its own factory in Saigon, Vietnam, under ethical working conditions and with a focus on resource conservation.
Dawn Denim is also the first German jeans brand to join the Denim Deal sustainable denim manufacturing project, announced during the Sep’24 edition of Munich Fabric Start.
Bangladesh's cotton consumption is expected to rise slightly to 7.8 million bales in Marketing Year (MY) ‘24-25, which began in Aug’24, according to a report by the US Department of Agriculture (USDA). Of this, 7.7 million bales will be imported.
As the second-largest RMG exporter and the largest importer of raw cotton globally, Bangladesh plays a crucial role in the international cotton market. The USDA initially forecasted in Apr’24 that Bangladesh's domestic cotton consumption for MY25 would reach 8 million bales, but in Sep’24, it revised its estimate to 7.7 million bales. In its latest ‘Cotton: World Markets and Trade’ report, the USDA slightly increased its projection to 7.8 million bales, further solidifying Bangladesh's position as a major player in the global RMG industry.
In the 2023-24 period, Bangladesh's primary suppliers of raw cotton were West African countries, along with India, Brazil, and the US. Notably, Bangladesh recently lifted the requirement for fumigation of US cotton upon arrival after nearly 50 years, a move welcomed by Bangladeshi apparel exporters. This change is expected to streamline the import process, reducing time and costs.
Bangladesh has repeatedly requested the US to grant duty-free access to RMG items made from US cotton, a preferential export treatment that has been denied. Apparel exporters believe that granting duty-free access would open up more opportunities for the Bangladeshi apparel industry, given the significant potential for US cotton growers and exporters to further tap into this market. In 2023, Bangladesh was the fifth-largest export market for US cotton, with export values exceeding $339 million, according to the USDA's Foreign Agriculture Services (FAS).
Global cotton prices, as reported by the World Bank's ‘Pink Sheet’ for July-Sep’24, declined by 15 per cent to $1.79 per kilogram from $2.11 during the same period in 2023. Despite the challenges posed by rising energy costs, a gas crisis, and the availability of US dollars for opening letters of credit (LCs), yarn production is expected to increase this year, driving higher cotton imports and domestic consumption.
In MY25, Bangladesh consumed 7.6 million bales of cotton, though domestic cotton production remains minimal, covering just 0.55 per cent of the country's 8.1 million hectares of arable land and accounting for less than 2 per cent of total consumption.
