Our Elegant First Lady, Melania Trump, Driving Sales of Luxury Goods
US First Lady Melania Trump has reopened style, elegance and luxury world over at the weekend G7 Summit of wealthy nations in Italy.
There the First Lady was dressed in the most exclusive haute couture that come from the highest level of 1-off hand craftsmanship, this kind of clothing is not for everyone, but on our First Lady it sends the message, elegance and style is back in our White House.
The floral applique jacket First Lady Trump purchased for the G-7 outing required many hours of expert Italian hand embroidery. Dolce&Gabbana did not release any details of the materials, but Stefano Gabbana celebrated its high-profile outing on Instagram.
Looking beyond the highest levels of haute couture fashion, a new Bain & Company study shows that sales of global luxury goods leveled off last year from a period Chinese driven euphoria. But, they are expected to grow again this year.
“For the brands, they need to do it, to have the attention and to keep the research and development high,” said a senior partner at Bain consulting. “There is not a real public for that. I would say very few women in the world are buying haute couture. While for the rest, I think people are spending money, but they are more cautious about value.”
Sales of luxury apparel, jewelry, accessories and beauty products in Y 2016 totaled $280-B. They are expected to grow by 2 to 4% this year.
The forecasts reflect improved confidence in Europe, and solid performance in China. They will offset a slowdown the United States due largely to the strong USD and uncertainty over national travel policy.
While sales in Paris are back to pre-attack levels, new uncertainties can affect the outlook. And in the US, that includes The Trump Administration’s moves to impose a travel ban on some Muslim nations and even widen the ban on laptops in the carry-on luggage on inbound overseas flights, which has been dubbed the “Trump Slump.”
The impact on luxury goods sales from President Trump’s travel policies have yet to be calculated, Bain said a strong USD is hurting sales to tourists to the United States, in particular from China, Argentina and Brazil.
For Y 2017, European sales are expected to increase 7 to 9%, while China luxury goods sales are expected to grow by 6 to 8%. A slight contraction is forecast for the Americas and Japan.
The Bain report said high-end consumers are more price conscious than ever, and they will not accept an annual price increase for the same products, that innovation is Key.
“They are happy to pay for newness or innovation or extreme quality that is durable but not for the same product that is inflated 6% every season,” the report’s author said.
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