Bain & Company just released its predictions for the luxury market in 2017. It expects the overall luxury market, including both luxury goods and experiences, to post 5% growth this year to reach €1.2 trillion globally. After what it calls a “reboot” from 2015-2016, it sees the luxury market reaching a “new normal” of 4-5% annual growth through 2020.
Taking credit for this exuberant forecast is the rising tide of luxury-leaning millennials that luxury brands are finally starting to connect with.
“It’s an interesting time in the world of luxury – the millennial state of mind has changed the way purchases are made across generations and has pushed luxury brands to redefine what they deliver to customers,” said Claudia D’Arpizio, a Bain partner and lead author of the study. “For brands that manage to get this right, there is significant potential growth in the market for personal luxury goods in the years ahead.”
In the study, Bain identifies seven key trends shaping the luxury market’s future. Here’s what you need to know...