Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (DTTL), its global network of member firms, and their related entities (collectively, the Deloitte organization). Top 5 Five-year view The composite luxury goods sales of the Top 5 companies grew by 91% over the five years FY2016-FY2021. A report by Bain & Company reveals China is set to become world's largest luxury market by 2025. The nonfungible token (NFT) market stabilized after a wave of speculative interest from investors. Brands invested heavily (and successfully) to fuel demand. As 2022 draws to a nervy close, the market is headed for a 22% year-over-year increase. All personal luxury goods categories have now recovered to 2019 levels or better, with hard luxury, leather, and apparel leading the resurgence following the pandemic. In 2022, the luxury market generated positive growth for 95% of brands. The share of top customers has been expanding and accounted for some 40% of market value in 2022, compared with 35% last year. On the other hand, luxury cars the largest single category at 551 billion ($626 billion) will end the year at or slightly above 2019 levels. The luxury market now appears better equipped to cope with economic turbulence with its consumer base both larger and more concentrated, and customer-centricity and a multi-touchpoint ecosystem set to provide resiliency amid disruptions, the report finds. Success online at least partly depends on the amount of advertising dollars pumped into online channels. Luxury Goods: trends and predictions for 2022 (Bain Report). Global luxury goods market to grow 21 percent in 2022 to 1.4 trillion These domains are rich with opportunities for luxury brands but investments for future growth are crucial.". The global luxury goods market took a leap forward in 2022, despite uncertain market conditions. Brands continued to exert more control over their distribution, with directly operated channels increasing in importance again. Spirits grew faster than wine, with status spirits growing internationally and across categories, tapping into usage occasions once reserved for wines. 2022 Diversity, Equity, and Inclusion Report. Banks should adapt lending strategies to account for - bain.com The Middle East is very strong throughout markets, with Dubai and Saudi Arabia leading growth. The personal luxury goods market reached an estimated 113 billion in the Americas, growing 25% over 2021. Opportunities include entering a growing market, developing a network-based business model, showing commitment to sustainability, gathering data on customers and more. We therefore forecast that the market value of personal luxury goods will rise to between 540 billion and 580 billion by the end of the present decade, from an estimated 353 billion in 2022an increase of more than 50%. All markets fared well throughout the year, aided by healthy domestic demand and the return of tourists from the US and Middle East. This generational factor is one of the critical trends affecting the development of the luxury market in 2022, and for the rest of the decade, that are highlighted by todays report. "Luxury is back to the future" is the title of the latest market study worldwide by Bain - Altagamma. The spending of Gen Z and the even younger Generation Alpha is set to grow three times faster than other generations through 2030, making up a third of the market. 1 Richemonts FY2021 financial year ended in March 2021, so saw a greater negative impact of the COVID-19 pandemic on their FY2021 results compared with other Top 5 companies which had later year end dates. As they seek new ways to connect with their customers, they are changing their approach and mindset by incorporating sustainability and digitalization into their long-term strategies, to align with consumers demands and new regulatory requirements. Consumers overindulged on products, but the willingness to go back to experiences is at an all-time high we can read in the report. The coming years will see a further blurring of the boundaries between 'mono-brand' and ecommerce, which will increasingly push brands to take an 'Omnichannel 3.0' approach, enabled and enhanced by new technologies. Japan grew by 18% at current exchange rates to 24 billion, finally catching up to its pre-Covid level. But despite present and continuing economic challenges, the luxury market continued to perform strongly throughout this year to date, with winners for brands across the board, and positive growth for some 95% of brands, todays report concludes. Within accessories, leather goods grew by 23%25%, far surpassing its pre-Covid levels (up 39%41% compared with 2019). According to report co-author . There will be a new value creation model (high tech & high touch), new KPIs to track (earned growth rate) and clear positive results (churn rate reduction) a lot to look forward to. Find company research, competitor information, contact details & financial data for FINANCIERE JIMENEZ of COTTENCHY, HAUTS DE FRANCE. In this webinar, Nirad Jain and Kara Murphy, co-leads of Bain's Healthcare Private Equity practice, share key takeaways from our 2023 Global Healthcare Private Equity Report, and dive into the macroeconomic forces and geopolitical dynamics shaking up the industry. The customer wants a seamless experience to shop anywhere, anytime. Described as the core of the core in the luxury market, personal luxury came roaring back after experiencing a V-shaped recovery. What Sadove sees shifting in distribution is a move toward more concession models in retail from traditional wholesale-to-retail distribution. The luxury market now appears better equipped to cope with economic turbulence with its consumer base both larger and more concentrated, and customer-centricity and a multi-touchpoint ecosystem set to provide resiliency amid disruptions, the report finds. Already it is about half the size of each of the three leading personal luxury goods categories leather accessories, beauty and apparel and its 27% growth from 2019 leaves every other personal luxury goods category in the dust. The composite luxury goods sales of the Top 5 companies grew by 91% over the five years FY2016-FY2021. Distribution is a complex discussion.. Examples include: acceleration of middle class and consumption upgrade, pressure on uber-wealth, delayed spending given current uncertainty. Based on a preliminary assessment covering both sales in the luxury goods and experiences market in nine major categories, it reports total revenues will increase between 13% to 15% over the 2020. When it comes to the overall value of this market, luxury cars significantly outperform all of the other components combined. From insights to the performance of the market, through estimates for the approaching us 2022, all the way up to some key recommendations this study contains data no one from the Luxury Goods industry should overlook. This article is a preview of the Top 5 companies which will be listed in the upcoming Global Powers of Luxury Goods 2022. The pandemic literally closed the doors in physical retail and theyve only partly opened in 2021. 2023 luxury market now set to be more resilient to recession than during the 2009 global financial crisis. But the Global State of the Consumer Tracker makes it easy for you to access consistent, high-quality data on consumer sentiment and behavior in retail, consumer products, automotive, and travel. The growth was fueled by the greater emphasis consumers have been placing on their home lifeas both shelter and source of self-definitionsince the pandemic. Bain & Co. partner: Luxury brands seen a 'roaring start' to 2022 Increasing market concentration, yet with high dynamism from rising stars. Boosted by a strong market performance across quarters, and despite macro-economic indicators worsening globally, as well as specific challenges in China, the personal luxury sector is set to see the value of its sales jump to 353 billion in 2022, marking an advance of 22% at current exchange rates (or 15% at constant exchange rates) versus the previous year, the study projects. Asia (excluding Japan) switched to second position, followed by Europe. Analysis of financial performance and operations for financial years ended through 31 December 2021 using company annual reports, industry estimates and other sources. After softening in Aug-Sept, consumption restarted strong in October despite scattered lockdowns. Personal luxury goods market to reach $378B by 2025: Bain Although there will never be "another China" in terms of growth' contribution to the industry, India and emerging Southeast Asian and African countries have a significant potential nevertheless. This is a BETA experience. Our 10-year commitment to invest more than $1 billion in pro bono services brings our talent, expertise, and insight to organizations tackling todays urgent challenges in education, racial equity, social justice, economic development, and the environment. "):200==n.status?e("#nl2go_form").html("You are already subscribed. Although there will never be another China in terms of outsize growth contribution to the industry, India and emerging Southeast Asian and African countries have significant potential, if the luxury industrys infrastructure (such as malls) and regulation can evolve quickly enough in those markets. But what's the current scenario? The performance of the last quarter of this year, in determining the final outcome for 2022, will largely depend on the progressive lifting of Covid-19 pandemic restrictions in China, as well as evolution of European and American luxury consumer confidence in the face of rising inflation and cost of living pressures, and potential recession in the US and European economies, the report notes. 9 min read. Over-performance of all categories, restocking wardrobe in the rising post-streetwear era. 2022 Luxury Study Renaissance in Uncertainty: Luxury Builds on Its Rebound Download By Bain & Company Scope: Global Apr 8, 2022 2022 From Surging Recovery to Elegant Advance: The evolving Future of Luxury A Market Study that shows how brands can build on their historic rebound. The steepest growth rate between 2019 and 2022 belonged to personal luxury goods, followed by experience-based goods, such as fine art and luxury cars. While the industry has benefited from increased prices and a continued shift to higher-margin direct channels, the lower profit levels reflect luxury brands investment in future growth, particularly through increased marketing spending and ambitious transformation programs. Just as they recently did through excellent products and human-centric engagement, they must now deal with new priorities: ESG, creativity chain, tech & data. In the United States, traditional luxury hubs gradually returned to growth while suburban areas retained their new prominence as a source of luxury sales. This reports reveals and describes what they are: China doubling and Americas booming, Europe and Japan are still in recovery mode. A new section in this year's report will focus on circularity strategies and the secondary/resell market, which has become increasingly important in the luxury sector. While the report states, there is still a place for rising stars in the industry, one wonders where? Yet luxury brand players are continuing to invest in future growth, even in the face of high inflation and rising costs, so that their profitability is slightly decreasing, following an unprecedented increase in 2021. Across 65 cities in 40 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. Global Luxury Goods Market Seen Growing 21% in 2022 to 1.4 Trillion Euros. The high-end furniture and housewares market reached 53 billion, up 13% from 2021. Meanwhile, China itself, which remains crucial to the long-term of the luxury market, continues to confront a challenging phase due to Covid lockdowns and is still performing below 2021 figures. A powerful factor for sector growth in the rest of the decade will be generational trends,the analysis reports. Stay ahead in a rapidly changing world. For any questions or to arrange an interview, please contact: Gary Duncan (London) Email: [emailprotected], Orsola Randi (Milan) Email: [emailprotected]Tel: +39 339 327 3672. But despite present and continuing economic challenges, the luxury market continued to perform strongly throughout this year to date, with winners for brands across the board, and positive growth for some 95% of brands, today's report concludes. This article is a preview of the Top 5 companies listed in the upcoming Global Powers of Luxury Goods 2022, which will be published in late 2022. As in last years report, there will be a section on the impact of COVID-19 on financial results. Even though this market is constantly improving since Q3 2020, there still is some uncertainty when it comes to the next holiday season. Fine art market rebounding thanks to gradual reopening of public auctions and art fairs. Between 2017 and 2021, the market size of second-hand luxury ballooned by 27 percent (first-hand luxury only grew by 12 percent over that same period.) Not all sectors can enjoy stable recovery, however. They are expected to account for between 40% to 45% of purchases by 2025 when the China mainland will overcome the Americas and Europe as the worlds largest market. Sales are set to hit a new record in 2022, with the market forecast to grow by 22% at current exchange rates to 353 billion. Strong market share shift towards European brands. Although there will never be another China in terms of growth contribution to the industry, new markets (such as India and emerging Southeast Asian and African countries) have significant potential, assuming their luxury shopping infrastructure can evolve quickly enough. China chic is only trouble for brands that continue doing what they always did. Required fields are marked *. Beauty (60 or $68 billion) and watches (40 or $45 billion) will be flat and apparel (57 or $65 billion) will remain -5% down relative to 2019. Local consumptions impacted by the slow vaccine adoption. The online channel's market share remained in line with 2021. Retail continues to dominate, while online channels are seeing a normalization in their growth. The robust performance in 2022 suggests that growth should stay healthy for the personal luxury goods market in the medium term. Luxury Sales Set to Grow by 5 to 15% This Year, Bain Says Will 2023 Be Another 'Golden Year' for Luxury Retail in China?