According to the reports the Global sales of personal luxury goods will grow by expected 2-4 percent at constant exchange rates in 2017, as higher spending in Europe and China outpace weakness in the United States and Southeast Asia.
The study by consultancy group Bain and Italian luxury industry association Altagamma showed that in the year 2017, a total revenue in the sector that includes watches, jewelry, clothes, shoes and leather goods will rise to 254 billion-259 billion euros from 249 billion euros in 2016.
In October, Bain had forecast 2017 growth of 1-2 percent for the luxury sector, but the industry managed to grow 4 percent year-on-year in the first quarter of 2017.Claudia D'Arpizio, Bain partner and lead author of the study sated that after a difficult 2016, the first quarter of 2017 brought some relief to the luxury industry. Bain does not name specific companies, but in the first quarter of 2017 luxury giants LVMH Kering and Hermes all posted strong results.
Federica Levato who is Bain partner recently stated that it is a healthier growth than before. So we have revised our market forecast for this year and few players who are doing well are really outperforming.
Europe, which is starting to see tourists returning, is expected to be the fastest growing market for luxury goods this year, with sales seen up 7-9 percent.Bright spots were Spain, seen as a relatively safe destination, and Britain, rendered more affordable to tourists after a post-Brexit slump in sterling, while mainland China was also recovering with 6-8 percent growth, said the report. According to Bain sales in the rest of Asia could shrink 2-4 percent in 2017.
As per Bain report The United States, major luxury goods market, is also set to underperform, with a strong dollar and uncertainty about the policies of President Donald Trump expected to create a challenging environment.The study added that those born after 1995, will represent 45 percent of overall luxury consumption.