Luxury consumers are cutting back on their purchases, and the numbers show it. According to the latest luxury report from Bain & Company, in partnership with Altagamma, the Italian luxury goods manufacturers’ industry association, 50 million luxury consumers have either opted out of the luxury goods market or been forced out of it in the last two years. The report states that global luxury is expected to reach nearly €1.
5 trillion in 2024, remaining relatively flat compared to 2023, with an estimated growth rate of between -1% and 1% year on year. According to Bain, this is the first time the personal luxury goods market will witness a "slowdown since the Great Recession, excluding Covid, experiencing a -2% erosion, at current exchange rates, compared to last year." Gen Z, which has been calling the shots on trends, has had an impact due to their buying behaviour, which doesn’t support luxury brands.
Claudia D’Arpizio, Bain & Company partner and leader of the firm’s global Fashion & Luxury practice, and the lead author of the study, stated in the press release: "Luxury spending has shown remarkable stability this year, despite macroeconomic uncertainty, largely driven by consumers’ appetite for luxury experiences." She added, "And yet, 50 million luxury consumers have either opted out of the luxury goods market or been forced out of it in the last two years. This is a signal for brands that it’s time to readjust their value propositions.
To win back customers, p.