The luxury market was on shaky grounds last year. This is when the value fell 1%, which brought the industry down to negative numbers. This incident was the first of its kind since the year of 2009. On the other hand, 2017 seems to offer varied options that are powerful enough to make the luxury market flourish once more.
Global Sales for Luxury Market Are Expected to Increase by 4%
On Monday, the consultancy firm Bain & Company released a recent study on the situation that the luxury market is in at the moment. The findings suggest that 2017 will be the year of unexpected growth for this branch. Global sales in this area will experience a surge 2 to 4%. At the same time, the growth will be accompanied by constant rates this year. This is because Europe and China are balancing the feeble activity in South-East Asia and the United States.
Personal luxury goods include jewelry, clothes, shoes, watches, and leather assets. The higher demand than the previous year is going to propel their total revenue between $393 billion to $400 billion. This is at least $5 billion boost in comparison to 2016.
Social and Business Environments Impaired the Sector in 2016
Over the past couple of years, the social and political environment slowed down the evolution of the luxury market. Europe was busy mitigating the aftermath of militant attacks. These malicious incidents impaired the touristic industry greatly. At the same time, Hong Kong decelerated the pace with which it used to do business while China saw a weakened demand.
All these business conditions led Bain & Company to believe that the growth of this sector in 2017 will be a weak 1 to 2%. However, the first quarter has already displayed a 4% boost so far. The author of the study, Claudia D’Arpizio stated that a steady social background is going to support this growth throughout the entire year.
The luxury market has great hopes with Europe. This continent might revive the industry with sales up 7 to 9%. The most promising countries were Spain and Britain while China managed to increase the stakes by 6 to 8% as well. Despite an empowered dollar, the United States might underperform in this sector due to uncertainty around President Donald Trump.
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