CASE STUDY

Luxury goods world wide market study, Fall/Winter 2016

There would be many case studies about the luxury market one of them that I am talking about today is the 15th edition of BAIN luxury study published by Bain & Company.

The overall report mentioned about the luxury market and how it is growing yearly. The overall luxury industry is growing annually apart from the personal and luxury goods industry. The personal luxury goods industry showed no change in market size in the past one year.

All this was accounted as a reason of the Brexit, US presidential elections and terrorism leading to such uncertain conditions of growth to the industry.

The customs control in China became tighter in an effort to limit foreign shopping to fight grey market and stimulate growth of domestic consumption. China is considered as the growth engine of the luxury goods market. The report also mentioned about how the wholesale market remains dominate the channel in personal luxury goods, but with casual goods in demand retail continues to rise.

Further more the report concludes as how the global luxury industry has made a shift from having personal luxury goods to the services industry such as luxury travel, stay and fine dines. Even with the expected CAGR of 3-4% of luxury goods market by 2020 is significantly slower than the rapid expansion of the sector during the mid -1990s and 2000s.

Overall the report concludes showing the trends and growth in the global luxury market and explain how strategies would become paramount and the future and create a hustle for the brands to cope up with sales in the market.