Study finds global luxury sales flattening amid self-inflicted creativity crisis and price hikes
The post-pandemic surge in global sales of luxury handbags, shoes and apparel is on pace to stall this year amid a creativity crisis and price hikes focused on the biggest spending customers
MILAN — The post-pandemic surge in global sales of luxury handbags, shoes and apparel is set to stall this year amid a creativity crisis and price hikes as brands shift focus to the biggest spending customers, a new study by the Bain consultancy said Tuesday.
Bain is forecasting flat worldwide luxury sales in 2024 following a slight first-quarter dip, according to the study commissioned by the Altagamma association. The consultancy cited political uncertainty during a presidential election year in the United States as well as economic uncertainty in China that has brought on a phenomenon of “luxury shaming."
Beyond socioeconomic factors and rising geopolitical tensions, the slowdown is also partly “self-inflicted,’’ said Bain partner Claudia D’Arpizio.
She cited a “creativity crisis,’’ in the sector, as a number of major fashion houses are transitioning creative directors, and a new focus on the super-wealthy customers, at the expense of the aspirational middle class and Gen-Z youngsters who fueled growth before the pandemic.
“There is a lack of clarity for many of these brands. They are making attempts to regain focus. It is five, six brands under turn-around, big ones. This is not helping the overall excitement,’’ D'Arpizio told The Associated Press. “This is a supply-driven industry. When you have the brands really in tune with customer needs, it usually reacts quickly.’’
She said some “tweaks” are needed on strategy and price points, adding that “you can’t grow without the middle class and younger generations.”
Among major
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