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2024 will not be a prosperous year for the luxury goods industry<\/strong><\/b>, according to the latest half-yearly report<\/strong><\/b> published on June 18 by Bain &<\/strong><\/b> Company in collaboration with Altagamma,<\/strong><\/b> the Italian business organization for the sector.<\/p>\n <\/p>\n The Bain\/Altagamma study has slightly lowered its estimates of last November, assuming a growth scenario of 0 to 4% compared to 2023<\/strong><\/b> for the personal luxury goods<\/strong><\/b> market (including fashion, accessories, beauty and fragrances, jewelry and watches)<\/strong><\/b>.<\/p>\n <\/p>\n Although, as Jo\u00eblle de Montgolfier, Global Director of Bain & Company’s Consumer, Retail and Luxury Goods Research<\/strong><\/b>, points out, a more optimistic scenario of “+4 to +6%” is not entirely out of the question<\/strong><\/b>…<\/p>\n <\/p>\n Whatever the case, luxury brands, especially those positioned in the personal goods category, will have to pull the right levers to stay in the race…<\/p>\n <\/p>\n After reviewing the luxury consumption patterns described by Bain in its quarterly study, we’ll now turn to the state of the different geographic markets<\/strong><\/b>.<\/p>\n <\/p>\n <\/p>\n Geographically, the sector’s No. 1 concern is China, “in a phase of stagnation”<\/strong><\/b>, with “after two and a half years of growth, a lassitude towards personal luxury products”, explained Federica Levato, partner at Bain &<\/strong><\/b> Company, to Reuters.<\/strong><\/b><\/p>\n <\/p>\n Jo\u00eblle de Montgolfier (Bain & Company), for her part, points out that “the Chinese were quite traumatized by the almost two-year closure linked to covid” and that “since the reopening at the end of 2022, they need to catch their breath”. Moreover, the experience of the pandemic has prompted them to “reallocate spending<\/strong><\/b>“, in particular to healthcare. They have also realized that they need to take care of their parents and grandparents…<\/p>\n <\/p>\n The slowdown in luxury consumption in the Middle Kingdom is also linked to the revival of Chinese tourism abroad<\/strong><\/b>, on the one hand, and, on the domestic market, to growing economic uncertainties and difficulties<\/strong><\/b> for many middle-class<\/strong><\/b> households, with rising unemployment. All this is leading to an unprecedented phenomenon in the country, the emergence of “luxury shaming” behaviour<\/strong><\/b> similar to that seen in America during the financial crisis of 2008 – 2009,” explains Bain.<\/p>\n <\/p>\n As a result, Chinese luxury consumers are shying away from displaying themselves<\/strong><\/b> and frequenting shopping malls, going instead to private appointments, ” private events,<\/strong><\/b> such as art auctions, taking place in a more hushed setting” points out Jo\u00eblle de Montgolfier (Bain & Company). They also prefer less ostentatious fashions<\/strong><\/b> to more blinged-out items…<\/p>\n <\/p>\n <\/p>\nThe “shame of luxury” in China<\/h2>\n
Hainan Island less attractive<\/h2>\n
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