The global market for personal luxury goods is expected to continue to grow at a slightly reduced rate of 5 percent in 2019, according to the Altagamma Consensus 2019. Footwear and accessories are expected to go up by 7 percent, followed by a 5 percent increase for perfumes and cosmetics, while clothing should rise by 2 percent.
By region, Asia should show the most rapid growth in 2019 (10%), partly due to the lowering of excise duties in China. Japan is predicted to come in next with a 5 percent increase, followed by an estimated 4 percent increase for North America. Altagamma predicts a 3 percent increase in Europe for the market of personal luxury goods in 2019.
As for the year 2018, the personal luxury goods market should be posting an estimated 6 percent sales increase at constant exchange rates, reaching a total market value of €260 billion. Meanwhile, the overall global luxury goods market – which also includes luxury cars, luxury hospitality, designer furniture, luxury cruises, designer furniture, fine food, fine wines and spirits, private jets and yachts, and fine art – is expected to grow by 5 percent to around €1,200 billion by the end of this year, the same rate as in 2017.
Personal luxury goods have recorded a positive performance in all geographical areas this year except for the Middle East, which was stable. Furthermore, while the Chinese market is getting stronger, with increased domestic consumption, the growth in luxury goods purchases has slowed down in Europe, mostly due to lower Chinese tourist flows.
The online channel accounted for 10 percent of total purchases of personal luxury goods this year. In the physical retail channel, some of the best performances were reported for airports stores and factory outlets. The new generations – Y and Z – were the only age groups that have spent more this year. Generation Y is best known as that of Millennials, or people born after 1980 and reaching adulthood around the year 2000, while Generation Z is the younger demographic, born after the year 2000.
Despite economic uncertainties, duty wars and geopolitical crises that have been marking the international scene, the luxury sector continues to show growth, thus demonstrating a certain non-cyclical nature, experts said.
These and other analyses and figures were illustrated in Milan on Nov. 15, during the 2018 edition of the Altagamma Monitor Conference. Alongside the “Altagamma Worldwide Market Monitor 2018,” presented by Claudia D'Arpizio of Bain & Company, the conference featured the presentations of two more studies on luxury goods: “Tax-Free Consumption in the European Union 2018,” presented by Pierfrancesco Nervini of Global Blue, and “Altagamma Consensus 2019,” presented by Armando Branchini of the Altagamma Foundation.