The luxury market and the high-profile brands captured within it face a new generation of shoppers. These buyers are exiting a years-long pandemic and face red hot inflation with an unclear end. They are expected to continue to curb spending on"aspirational" purchases, favoring frugality.
The industry saw a rebound last year, reaching $309 billion, Bain reported. But, as industry leaders look at the longer outlook, that could all have been a fluke. The luxury sector is worried about these financially stretched Gen Z consumers, and how they will sell those"aspirational" products to them, Reuters reported.
Internationally, government data over the summer signaled a concerning outlook, with the unemployment rate among Chinese city dwellers aged 16-24 at an astonishing record 19.9%. And if global sales for luxury brands are affected, that could most certainly mean domestic worries for all international labels.