Luxury Goods Market Heading for Slowest Year since 2009
Luxury Goods Market Heading for Slowest Year since 2009
The global luxury goods market is heading for its weakest financial year since the stock market crash of 2009.
In the US, growth has suffered from a combination of stock market turmoil, commodity- price decrease and a strong dollar. As well as this, luxury brands such as Burberry and Louis Vuitton are finding the Chinese market increasingly difficult as the effect of the government’s anti- extravagance policy and its slowing economy decrease the demand for luxury products.
According to Bain & Co., sales of luxury wear will rise as little as 1 percent in 2015, despite estimating growth of 2 to 4 percent earlier in May this year. This estimation means that 2015 would see the weakest gain since sales fell 11 percent in the 2009, a year after the Lehman Brothers’ demise.
However, there may be hope on the horizon. A weaker Euro means that Chinese consumers will be going abroad to shop where weaker currencies give them the advantage in price. Bain expects that instead of clothing, jewellery will be 2015’s major selling point, estimating a 6 percent rise. This could be due to the fact that in the face of economic uncertainty and instability, people are looking more and more towards investing in concrete commodities such as diamonds and gold.
Luxury Goods Market Heading for Slowest Year since 2009
