The Chinese will Account for 50% of Luxury Sales by 2025
Chinese consumers remain the focus of luxury goods makers, as a new study by Bain consultancy shows they will fuel nearly half of global high-end sales by Y 2025.
Bain said Thursday that Chinese shoppers will account for 46 – 50% of global luxury sales of an estimated $412-B in just 6 years. That is up from 33% of all sales of luxury apparel, accessories and cosmetics last year.
Bain partner Claudia D’Arpizio says 50% of those purchases will be Made in China, as price differences fade and brands improve the customer experience in the country.
Luxury goods sales in China this year are forecast to be up 18% to EUR 23-B.
Europe and the Americas, are still the 2 largest markets, but remain flat due to strong currencies, totaling EUR 84-B and EUR 80-B, respectively.
Mr. D’Arpizio said that Bain identifies 5 different generations of luxury goods consumers in the current market, from those born before Y 1945 whose spending focuses more on experiences than hard luxury, to current teenagers who favor casual wear like expensive sneakers.
“This is an opportunity for brands to cherry-pick the customer. Loro Piana and Balenciaga have different customer bases, while Gucci or Louis Vuitton can be relevant for teen-agers or older customers,” she said.