The luxury industry is hitting a wall. Recent studies from the global leaders in predicting the prospects for luxury market growth testify to it.
Deloitte, which studies only the top 100 largest luxury brands, the industry’s best and brightest, sees these companies’ growth slowing over the next five years, as compared with the last five. Euromonitor reports that while the luxury goods market will grow in 2017, it will do so slowly, with particular weakness in Western Europe and North America markets.
Bain & Company, in association with Fondazione Altagamma, forecasts growth in experiential luxury, while the personal luxury goods segment contracted 1% due to a shift in exchange rates, and was flat at current exchange rates. More troubling, Bain reports the Americas declined 3% from 2015-2016 and Europe by 1%.
Bain’s report said: “This is the third consecutive year of modest growth at constant exchange rates, and it represents a new normal in which luxury companies no longer benefit from a favorable market and free-spending consumers.”