Forecasts and initial financial results from the major luxury groups seem to attest to the boom in American spending on luxury products : a glimmer of hope for the industry, which has to contend with the weakness of the Chinese market.
The United States, driving recovery in the luxury goods sector
For the first time in more than two years, Americans’ spending on luxury goods has improved, marking a positive sign for the sector: according to recent data from Citi, luxury credit card purchases in the US rose by 1% in December compared to the previous year, with strong demand for leather goods and high-end clothing.
This upturn in US spending comes at a time when the global luxury goods industry is going through a difficult period : growth forecasts remain moderate after a year 2024 marked by weak demand in China, where the real estate crisis and an economic slowdown have slowed consumer appetite for luxury goods. The trend remains more moderate in Europe, where increases in the cost of living have also limited lavish purchases, albeit to a lesser extent.
Against this backdrop, the sector’s major players, such as LVMH and Kering, are counting on American customers to bolster their results. The rise in stock market investments and crypto-currencies in the US has helped fuel this renewed optimism, as has the favorable dollar dynamic, which is boosting US consumers’ purchasing power for European luxury goods.
A global market in difficulty, with signs of fracture between the major brands
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