Personal luxury goods market to shrink for first time since the 2008 financial crash, research finds

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The personal luxury goods market looks set to face its first slowdown since the Global Financial Crisis, excluding the Covid period, a new report showed Wednesday.

Global economic uncertainty and inflationary pressures have emerged as common threads in the earnings reports of luxury labels this year.The storefronts of Dolce & Gabbana, Tiffany & Co. and Patek Philippe are seen as people enter Icon Siam, a luxury shopping mall located on the Chao Phraya River, on June 12, 2024 in Bangkok, Thailand.

It noted that overall luxury spending is forecast to remain flat year-on-year in 2024 at around 1.5 trillion euros , even as segments including autos, travel and fine wine record modest growth.Global economic uncertainty and inflationary pressures have emerged as common threads in the earnings reports of luxury labels this year, with

Sustained weakness in the China market could weigh further on the luxury sector in 2025, according to the report, which nevertheless cited this as a lower probability outcome and instead pointed to a gradual recovery in the second half of next year as its more "realistic scenario." Small personal items, such as eyewear and beauty, also saw an uptick, as shoppers opted for "small indulgences" rather than bigger buys, the report said.

 

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Luxury goods market to shrink for first time since the 2008 financial crash, research findsThe personal luxury goods market looks set to face its first slowdown since the Global Financial Crisis, excluding the Covid period, a new report showed…
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