Retail trade Luxury market 2024: Stability despite challenges

The global luxury market will remain stable in 2024, despite a decline in the personal luxury goods sector. Experience-oriented luxury offerings are gaining in importance.

The global luxury market is stable in 2024, with total spending expected to be around 1.5 trillion euros, similar to the previous year. This estimate comes from the latest "Luxury Goods Worldwide Market Study" by Bain & Company and the Italian luxury goods association Fondazione Altagamma.

Despite this stability, the market for personal luxury goods recorded its first decline since the 2008/2009 financial crisis. The authors of the study attribute the fall of around 2 percent to declining demand from Generation Z and a shrinking base of luxury customers overall.

Experience-oriented luxury goods on the upswing

While the market for personal luxury goods is declining, high-quality experiences such as travel, events and wellness are gaining in importance. Luxury goods that focus on experiences, such as yachts and private aircraft, are also in demand. Within personal luxury products, cosmetics and perfumes are showing particularly strong growth, while leather goods, shoes and luxury watches are less in demand.

Strategies to win back younger customers

In order to win back younger customers, the authors of the study recommend that luxury brands rethink their strategies. Investments in personalization, greater customer interaction and digitalization are crucial. Artificial intelligence plays an important role in better addressing the needs of the younger generation.

SDA