- Luxury spending during the upcoming holiday season is expected to experience slight growth, according to consultancy firm Bain & Company.
- Despite personal luxury goods sales being projected to grow by 8%, the forecast for 2024 shows a more modest rise of between 1% and 4% at constant exchange rates.
- Wealthy individuals wishing to purchase luxury goods over the festive period should use a safe money transfer service when making transactions.
The global sales of luxury goods are projected to remain stable in the fourth quarter, as domestic luxury spending continues along the same trajectory it has during 2023, with the luxury market relying on tourist flows to drive spending in Europe.
A report by Bain & Company shows that there is also a more optimistic range where the luxury market increases by 7%, taking into account the potential return of tourist flows to Europe and the US.
This comes after a surge in personal luxury goods sales over the past three years, with this year’s sales estimated to reach $387bn.
The predicted growth of the luxury market, however, remains smaller than pre-pandemic levels due to a slow recovery period for global spending.
Bain & Company’s report predicts that global sales of personal goods, including beauty products, accessories and clothing, are likely to remain relatively stable in December compared to the same period last year; this follows a 3% decline in sales during the third quarter.
Nevertheless, the global luxury market is still booming, with projections indicating that it will reach $1.6tn in 2023, which reflects an 8% to 10% growth over 2022 and sets a new record for the industry.
Likewise, luxury powerhouses such as LMVH and Kering have continued to attract high-net-worth individuals (HNWIs) from across the globe with collectable luxury items and experiences.
HNWIs looking to purchase luxury items over the festive period should access secure modes of money transfer when making payments.
The latest report from Bain & Company highlights the resurgence of spending on luxury experiences, with social interactions and travel playing a significant role in fuelling this trend.
In recent years, the Chinese have played a pivotal role in fuelling growth in the Asian market – however, according to Bain & Company partner Federica Levato, it seems that they may be on the verge of fully returning to Europe by the end of next year due to interactions with HNWIs from the UK.
Despite the challenges they faced in 2020, Levato noted that the total number of sales from Chinese shoppers is already registering 40% of higher than the levels seen in 2019 in Europe.
Interestingly, high-end jewellery, fragrance and makeup are among the products that have been particularly favoured by Chinese consumers, with leading brands enjoying the most success.
European HNWIs wishing to import luxury goods from China and the US should use safe international money transfer options.
Luxury collectors can find the best exchange rates by using our online money transfer comparison tool.
