Shoppers are expected to continue to splurge on luxury goods in spite of a possible global recession, boosting the €353 billionThe joint forecast from analysts at Bain & Co and Altagamma comes on the back of another strong year for luxury goods, with sales up 15 per cent at constant exchange rates between 2021 and 2022 against soaring inflation and rolling COVID-19 lockdowns in China.
Although luxury was not “recession-proof”, it was better placed to weather financial shocks than during the 2008-9 financial crisis, Claudia D’Arpizio, partner at Bain & Co, told the Financial Times. “These customers were a big lever of resiliency, and they don’t necessarily shop in stores; they are more into private events, personal shopping. Brands can work with them even when shops are closed,” she added.Kane Lim’s dad gave him a US$1m watch in Bling Empire’s latest season. Here’s what you need to know
Although the Chinese luxury market has yet to recover from the pandemic, if it were to relax its zero-COVID policy and travel restrictions, luxury sales would probably hit the top of Bain’s growth forecast of about 6 to 8 per cent next year. Two weeks ago, Beijing reduced its coronavirus quarantine requirements for close contacts and international travellers, though its zero-COVID stance remains firm.