Global luxury market must move more than $3 trillion by the end of the year

The study Worldwide Luxury Market Monitor, prepared by Bain & Company in partnership with Fondazione Altagamma (Italian Foundation of the luxury goods industry), revealed that the global market for luxury consumption registered a growth of 4% in the last six months and must exceed the mark of more than $3 trillion in 2016. Among the factors that contributed to this scenario, are sales of luxury cars, which showed an increase of 8%, and changes in the behaviour of consumers, who now prefer to invest in new and more personal experiences such as travel, gastronomy, wines and even works of art. Today the luxury goods industry profits R$ 861 billion, influenced by the U.S. market''s decline and the growth of China, after three years of stagnation.
"The luxury segment reached its point of maturation, so brands must adopt different strategies if they are to succeed," says Bain''s partner Company in Brazil &, Gabriele Zuccarelli. "So much that we get a clear movement of polarisation between winners and losers in this market, as regards the performance of all product categories and sectors."
The Bain & Company also identified that the digital environment continues as a democratic tool in the global market, so much so that the e-commerce leads the luxury shopping channels and already represents the third largest global market segment (7%), behind only the U.S. and Japan, in addition to consolidate as a key element in the digital revolution of luxury.
The results also showed that the discounts on luxury goods represent more than 35% of that market, compared to the full price of the products. Although off-price stores comprise more than 30% of the segment, the trend is that these numbers keep going up, due to pressure from consumers on the values of the products. In addition, the jewelry and other accessories registered a good performance, exceeded only by beauty products, although vary according to the brand.
The consultancy predicts that the luxury market will still make a profit between R$ billion and R$ 968 986 billion by 2020, with an annual sales growth of 3% to 4%, to start in 2017, but the path should not be easy. "The luxury brands must adjust their expectations to their strategies. We''re in a time when the companies that adapt their business, have an omni-channel presence and having a client-centric approach will stand out in the market. And those who refuse to do that will be left behind, "concludes Zuccarelli.