Summary
Authors: Claudia D’Arpizio and Federica Levato
The AltaGamma-Bain Luxury Goods Worldwide Market Study Fall 2024 provides an in-depth analysis of the global luxury market, indicating a slight slowdown for the first time in 15 years, excluding the Covid-19 period. The report highlights a mixed performance across various sectors, with experiential goods and experiences showing resilience. Notably, the US is experiencing a slow recovery, while China continues to underperform due to macroeconomic gloom. In Europe, Italy and Spain lead the luxury market, with growth driven by tourism in Tier-1 cities and resort locations. However, the market is facing challenges, particularly from a shrinking customer base as Gen Z shows less engagement with luxury brands and a preference for value-oriented purchases. The report emphasizes the need for luxury brands to focus on quality, creativity, and fostering meaningful customer relationships, amidst increased market volatility and tightening ESG requirements. Furthermore, the study highlights the potential of AI-enabled decarbonization in the luxury industry. The report also includes a comprehensive study of the personal luxury goods market, revealing an estimated market perimeter adjustment of approximately €369B in 2023.