In 2017, the overall luxury market grew by 5 percent, with positive performance in every areas of the world. The results of the sixth edition of the Worldwide Luxury Market Monitor by Bain&Co e di Altagamma Consensus 2017 confirm this situation. The Luxury business concerns the personal luxury (€ 262 million of turnover), the luxury cars (€489 million of turnover), the luxury experiences and the Italian luxury system. This one is grown by 5 percent during this year and it maintains its international market share of 10 percent. In the Italian Tannery the results are very interesting: during this year this business is grown by 7 percent.
Europe continues to bounce back, growing by 6 percent at current exchange rates and reaching €87 billion of retail sales to regain its place as the top region for luxury sales by value. Tourist flows have continued to support the market in the UK, Spain and France, and local consumption has also strengthened, particularly in Germany.
Local buying by increasingly fashion-savvy Chinese customers has boosted sales in China by a remarkable 15 percent in current exchange rates in 2017, to a total market size of €20 billion. Buying abroad has also increased, with the share of global personal luxury purchases by Chinese nationals reaching 32 percent in 2017.
The Italian Luxury market reinforces its own marketshare. Made In Italy is the key business, that can support the italian growth in the international markets. In particular, Tannery and Fashion continue to drive the Italian luxury system, with a growth by 7 percent compared with the previous year.
“Luxury is the battering ram of the Made in Italy in the foreign countries – says Andrea Illy, enrepreneur and Fondazione Altagamma’s chairperson - Today, the sector is in front of 4 epochal changes: a new generation of consumers, the transformation of the retail and the leading role of brands, the new technologies and the new appearance of competitors”.
New shopping methods
The retail channel grew 8 percent in 2017 alone. Of that, 3 percent came from new-store openings and the remaining 5 percent came from like-for-like sales growth. Consumers changes their shopping methods and this data confirm this transformation: the online trade is increased by 24 percent during one year (in particular in Asiatic and European areas). Accessories, beauties products and clothes are purchased online. Tramite gli ecommerce vengono acquistati soprattutto accessori, prodotti di bellezza e abbigliamento. Bain estimates that online sales for personal luxury goods will make up 25 percent of the market by 2025, with stores still accounting for 75 percent of purchases.
Luxury in the future
Bain expects this positive growth to continue at an estimated 4 to 5 percent annual growth rate in the next 3 years, with the market for personal luxury goods reaching €295-305 billion by 2020. In this context, companies have to accept the challenge: redefine the proposal for the customers. This is is a social, connected and competitive world an brands have to offer more than a simple product.p>
This challenge represents a huge transformation for Made in Italy. In the Tannery system, this means high quality, innovation, sustainability, high technology and tradition. Consumer of a leather product has to be able to perceive all the “life of the product” : the use of high-quality raw and of the most innovative technologies and the same old artisanal touch of Made in Italy. In this way, the story can continue. Source: www.bain.com
This challenge represents a huge transformation for Made in Italy. In the Tannery system, this means high quality, innovation, sustainability, high technology and tradition. Consumer of a leather product has to be able to perceive all the “life of the product” : the use of high-quality raw and of the most innovative technologies and the same old artisanal touch of Made in Italy. In this way, the story can continue.