What: Luxury is set to pursue its growth in 2023 in spite of uncertainty.

Why it is important:  Luxury brands are key contributors to department stores’ growth, and should continue contributing to it again this year.

Bain & Company's Luxury Goods Worldwide Market Study - Spring 2023 reports a record year for the personal luxury goods market in 2022, reaching €345 billion.

Despite geopolitical and economic uncertainty, growth of 9-11% continued into Q1 2023. Factors contributing to this growth include hyperinflation decrease, local consumer confidence recovery in Europe, China's reopening and easing of zero-Covid policy restrictions, and positive momentum in Japan and Southeast Asia. A slowdown is expected in the US due to fears of a potential recession.

For brands to succeed, the study suggests focusing on consumers, balancing exposure across geographies, offering high-value propositions, and promoting iconic, timeless pieces.

By 2030, the luxury goods market is predicted to be 2.5 times the size of the 2020 market, reaching between €530 and €570 billion.

We will upload the full report as soon as possible.

The 2023 Bain – Altagamma report on luxury is out