Luxury market’s last quarter growth hinges on China’s reopening
It will also be boosted by consumer confidence in Europe and America.
The performance of the luxury market in the last quarter of the year will be largely affected by the lifting of pandemic-related restrictions in China, Bain & Company reported.
The last quarter's performance will also be boosted by consumer confidence in Europe and America amidst rising inflation and cost of living.
“The nouvelle vague – the new wave – of the luxury goods market will demand evolution amid disruption, adaptation amid uncertainty, and an expansion of creativity in all of the basics – all while new trends and concepts develop,” Claudia D’Arpizio, a Bain & Company partner and leader of Bain’s Global Luxury Goods and Fashion practice, the lead author of the study, said.
According to Bain 7 Company, the luxury market performed strongly starting January with 95% of brands registering a positive growth.
Luxury brands could however see a slight decrease in profitability as it continues investments amidst high inflation and rising costs.