Luxury Brand Growth Prospects in 2024
The luxury market is constantly evolving, and the outlook for 2024 offers an interesting look at the challenges and opportunities that await luxury brands. According to the 22nd luxury market report by Bain & Co. and Altagamma, the luxury market is expected to reach €1.5 trillion by the end of 2023, including fashion, experiences, automobiles, art, décor, spirits and other sectors.
A key focus of the report is the expected growth of personal luxury goods, such as apparel, accessories and beauty, with a projection of €362 billion in revenues and an estimated growth rate of 11-13%. However, it also highlights the risk of slowing growth to 1-4% for 2024, with complications related to the macroeconomic tensions and geopolitical challenges of recent years.
The research also highlights the importance of generational change, with a particular focus on the purchasing preferences of Millennials and Generation Z. Gen Z is expected to make up 25-30% of luxury buyers, while Millennials will be between 50-55%. This scenario requires luxury brands to continuously adapt their offering, communication and identity to meet the needs of these younger generations, whose inclinations to search for value beyond the physical object are shaping the way in which luxury shopping is done.
On a positive note, the expected recovery of the Chinese and American markets is expected to play a key role in restoring the fortunes of luxury. China in particular is expected to continue to represent a significant profit opportunity, along with other growth markets such as Japan in Asia and Saudi Arabia in the Middle East. In addition, the growing importance of experiences in luxury is highlighted, with a focus on a holistic view of luxury that includes not only products, but also complete lifestyle experiences, from art to dining, from décor to vacations.
In conclusion, the report highlights that luxury brands will face a number of challenges in 2024, but at the same time there are significant growth opportunities, especially in emerging markets and specific product categories such as jewelry and beauty. The ability to adapt and innovate will be key to success in the luxury sector in the near future.
A key focus of the report is the expected growth of personal luxury goods, such as apparel, accessories and beauty, with a projection of €362 billion in revenues and an estimated growth rate of 11-13%. However, it also highlights the risk of slowing growth to 1-4% for 2024, with complications related to the macroeconomic tensions and geopolitical challenges of recent years.
The research also highlights the importance of generational change, with a particular focus on the purchasing preferences of Millennials and Generation Z. Gen Z is expected to make up 25-30% of luxury buyers, while Millennials will be between 50-55%. This scenario requires luxury brands to continuously adapt their offering, communication and identity to meet the needs of these younger generations, whose inclinations to search for value beyond the physical object are shaping the way in which luxury shopping is done.
On a positive note, the expected recovery of the Chinese and American markets is expected to play a key role in restoring the fortunes of luxury. China in particular is expected to continue to represent a significant profit opportunity, along with other growth markets such as Japan in Asia and Saudi Arabia in the Middle East. In addition, the growing importance of experiences in luxury is highlighted, with a focus on a holistic view of luxury that includes not only products, but also complete lifestyle experiences, from art to dining, from décor to vacations.
In conclusion, the report highlights that luxury brands will face a number of challenges in 2024, but at the same time there are significant growth opportunities, especially in emerging markets and specific product categories such as jewelry and beauty. The ability to adapt and innovate will be key to success in the luxury sector in the near future.
