Luxury is back in fashion! According to a recent study by Bain & Co, the global luxury goods market — encompassing both luxury goods and experiences — has rebounded following a short period of decline. In 2017, the market grew by 5% to an estimated €1.2tr worldwide and is projected to grow at similar rates in coming years. Interestingly, the main engine behind the industry’s success has been a generational shift with 85% of growth attributed to Generations Y and Z. ‘The Millennial State of Mind’ redefines the way luxury brands think about their clients by shifting attention to greater personalisation and enabling consumers’ self-expression.
Even though the luxury industry has enjoyed growth across all world regions, the real stars of its success story are rising emerging markets. China, in particular, has been a clear top performer with growing demand from the country’s new fashion-savvy middle class.
This section looks at the luxury goods market and consumption from different angles. The industry remains polarised between winners such as China, who are experiencing growth, and losers such as Poland who face declining sales and increasing numbers of bankruptcies. The notion of conspicuous consumption is as popular as ever, but the new millennial trends are transforming the nature of consumerism. It is an interesting time in the world of luxury and the coming years will show how well it has managed to adapt to these new challenges.