After a sharp decline in 2020, the global personal luxury goods market is set to return to 2019 levels this year (283 billion euros versus 281 billion euros), supported by an almost doubling of spending in China and continuing online growth, according to the latest “Bain & Company Luxury Study” report. Consulting firm Bain & Company describes it as “a perfect V-shaped recovery from the pandemic.” A rebound was to be expected when stores reopened after the lockdown, but exceeding the 2019 high is beyond all odds.
Bain estimates that the second-hand luxury market has climbed to € 33 billion in 2021, driven by increased demand and a growing competitive arena. By way of comparison, the second-hand market grew by 65% between 2017 and 2021, against a growth of 12% in the same period for new luxury. Bain still sees the personal luxury segment growing between 6% and 8% annually through 2025. The report highlights that in 2021, the demand for luxury goods in China increased 97% compared to to 2019. By 2025, Chinese consumers are expected to account for between 40% and 45% of all consumers of personal luxury goods.
Between 25% and 27% of luxury shopping will be done in mainland China. In 2021, the online channel is expected to account for around 21% of total luxury purchases, up from 12% in 2019. [con i siti Web controllati dai brand del segmento che rappresentano il 40% del segmento online]. After a 50% leap from 2019 to 2020, online continues to grow, growing 27% from 2020 to 2021 to reach an estimated market value of € 62 billion this year, thanks to accelerated adoption during COVID. with newly acquired customers. Websites controlled by industry brands now account for 40% of the online segment, up from 30% in 2019. Online and mono-brand stores combined have been the key channels for the 2021 recovery and will drive growth over the medium term.
More than 70% of these online purchases are expected to be made by Millennials and Generation Z. “The crisis is likely to mark a turning point for luxury as we knew it – luxury brands will continue to redefine themselves, expanding their mission beyond creativity. and excellence, becoming enablers of social and cultural change ”said Federica Levato, partner, Bain & Company.
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