Wednesday, September 28, 2022

Study: American shoppers are spending more than Chinese to revive the luxury goods market

MILAN (AP). The luxury accessories, leather goods and personal apparel market has returned to pre-pandemic levels as US shoppers outpaced Chinese shoppers in search of the latest fashion trends, according to a study released Thursday, released Thursday. Bain Consulting.

Global consumer spending on luxury goods, including the latest sneaker trends and design developments, is projected to grow 29% this year to 283 billion euros ($ 325 billion). It’s a return to 2019 levels and a way out of the gloom of the 2020 pandemic bans that have closed stores and halted international travel. The holiday shopping season is expected to boost the recovery, Bane said.

“We are pretty positive, even though growth rates, particularly in China, have slowed since mid-August. But they are still very strong, ” said Claudia D’Arpizio, a Bain partner who led the study. “Personal goods have skyrocketed in a V shape.”

The larger global luxury market, which encompasses high-end travel, restaurants, fine art and furniture, is still lagging behind 2019 levels, Bane said.

Consumers have shifted their spending to high-end furniture as many spend time at home rather than traveling the world, while travel restrictions have been particularly tight on luxury hotels, fine dining and cruises – all sectors that have yet to fully recover. …

The global luxury goods market is expected to reach 1.1 trillion euros ($ 1.26 trillion) this year, about 10% below the 2019 level. The luxury cruise sector has been hit hardest, with spending down 80% from pre-pandemic levels and declining even since 2020. Still, good orders for 2022 provide “glimmers of hope,” D’Arpizio said.

As international tourism continues to be difficult, consumers have begun to wake up to their new fashion trends at home instead of encouraging duty-free overseas sales.

American consumers have at least temporarily supplanted Chinese as the largest sponsors, accounting for a third of all sales this year, compared with about 23% of Chinese shoppers who were on par with Europeans. This trend is expected to reverse by 2025, with nearly half of all spending going to Chinese consumers, just over 20% to Americans and 18% to Europeans.

Bain predicts tourism will recover by the end of next year – mid-2023, but D’Arpizio said she expects the pandemic to create new habits and luxury buyers will spend a lot at home, not necessarily abroad.

“We are waiting for the return of tourists. We don’t expect them to be as relevant as they used to be, ” she said.

The pandemic has also accelerated the transition to online shopping and increased the dominance of larger brands in the marketplace, while encouraging the use of collaboration and digital campaigns to gain attention.

“The pandemic is widening the gap. We now see clear winners and losers. Larger groups have more muscle, ” said D’Arpizio.

Thus, they exploited ties within larger conglomerates, such as the Gucci and Balenciaga link between the two brands owned by the French group Kering.

Nation World News Desk
Nation World News Desk
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