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New record for the global luxury market – it will reach around 1.5 trillion euros in 2023

Luxury tourism is almost bringing Europe back to pre-pandemic levels. Even if the luxury sector has a good basis for further growth, it will need to have the ability to innovate in order to operate more efficiently in the future.

According to the “Luxury Goods Worldwide Market Study” by Bain & Company in collaboration with the Italian luxury goods association Fondazione Altagamma, sales of luxury experiences such as exclusive luxury travel, cruises and luxury cars have grown particularly strongly. This corresponds to an increase of eight to ten percent. However, the segment of personal luxury goods such as clothing, shoes, perfume and jewelry will also increase by around four percent to a total of 362 billion euros by the end of the year compared to 2022. However, there are signs of a slowdown in growth compared to the previous year. While it was still at 95% in 2022, the market will have grown by 65-70% by the end of this year.

In Europe, the market for personal luxury goods could grow by seven percent by 2023, which corresponds to around 102 billion euros. This applies to all categories, with jewelry being a popular investment.

According to Bain forecasts, online and monobrand channels are ahead. Sales in these channels will account for two thirds of the luxury market by 2030, as they guarantee an excellent customer approach across the entire customer journey and will combine the analog and digital shopping experience in the best possible way. In addition to exceptional performance, sustainability and the use of technology will also play an important role.

The special customer approach of the different generations is also of enormous importance. Gen Z in particular, which will generate around 25-30% of sales by 2030, expects a targeted approach. In addition to social and cultural values, this generation primarily wants experiences when shopping and also shapes the values of other generations. The question of meaning is paramount in purchasing decisions.