What: Bain & Altagamma release their yearly predictions on how the luxury industry is doing

Why it is important: Polarisation everywhere, market contractions, mildly positive or negative results according to the location… customers are fickle and luxury brands are navigating at sight.

The personal luxury goods market is experiencing mild growth in 2024, with polarized performance across regions and brands. Q1 2024 shows a slowdown, particularly in China and the US, while Europe remains resilient and Japan flourishes. Brand polarization is significant, with top performers continuing to thrive while others struggle.
Key trends include a shift towards experiential luxury, pressure on profitability, and changing consumption patterns. Brands are focusing on top customers while also broadening their audience reach. Price elevation strategies are reaching their limits, leading to longer markdown seasons.
Geographically, the US faces ongoing uncertainties, China struggles with structural and social issues, and Japan benefits from tourism. Europe shows resilience with local consumption in key markets.
Category-wise, jewelry and bags are outperforming, while ready-to-wear suffers. Beauty and small luxuries are rising as affordable indulgences.
Looking ahead, 2024 full-year growth is projected at 0-4% in a realistic scenario. Key challenges for brands include maintaining reach across audiences, nurturing value propositions across price points, delivering experiences, and fueling consumer love beyond desirability.

Bain & Altagamma report on Luxury - Q1 2024