Dubai Remains Stable as Global Personal Luxury Goods Market Poised to Grow by 6-8 Percent to 276-281B in 2018, Driven by Strong Rebound in China

The luxury market is on a tear halfway with 2018. A positive trend across all regions is set to drive this market higher by 6-8 percent (at constant currency exchange rate) this year to reach EUR276-281 billion. "China" and "millennial state of mind" continue to be the buzzwords in an industry that can get to EUR390 billion internationally in sales by 2025. These are the key findings from Bain & Company, the world's leading advisor to the global luxury goods industry, in the Bain & Company Luxury Study 2018 Spring Update released today in cooperation with Fondazione Altagamma, the Italian luxury products manufacturers' industry foundation. The report also mentions Dubai's stability on the market, aptly backed by its leading placement as a highly-preferred vacationer destination.

2018 is off to a strong start, said Claudia DArpizio, a Bain & Company partner and lead author of the study. Currency fluctuations will have an impact, but we expect the healthy trend to continue across all regions and customer segments. Chinese consumers continue to stand out as a growth-driver for the industry, and are more fashion-savvy and digitally advanced than ever before, accelerating the shift of the industry to the millennial state of mind.

Regional dynamics in the luxury market

In the Americas, the United States luxury market taken advantage of a weak dollar during the important holiday. Tourists from Asia and Europe improved key cities while local consumers were drawn to luxury once again. Canada is growing while performance in Latin The U.S.A. is combined. The region overall is anticipated to grow in between 3 to 5 percent (at continuous exchange rates) in 2018.

Europe was adversely affected by a stronger euro, which had an influence on acquisitions by tourists. Some countries gained from more powerful consumption (Russia, France, Switzerland) while UK and Germany experienced a slowdown. Bain & Company forecasts development of 2-4 percent (at continuous currency exchange rate) for the region.

Mainland China is anticipated to represent the lion's share of development in 2018. We anticipate this market to grow by 20-22 percent (at consistent currency exchange rate). Brand names are discovering ways to deal with local customers, usually young and heavily influenced by social media.

Acquisitions by travelers improved spending in Japan, especially Tokyo and Osaka, though it was partly redirected towards experiences. Local influencers and social media are likewise key decision affects for more youthful local customers. Bain & Company forecasts growth of 6-8 percent (at continuous currency exchange rate).

Throughout the rest of Asia, Hong Kong and Macau advance their recuperation trajectory. South Korea take advantage of visitors from China, yet political stress in the region can have an important influence on 2018 development fads. Bain & Company thinks this region might grow by 9-11 percent (at constant exchange rates).

The remainder of the world is expected to be flat or see just minor growth of 2 percent (at constant currency exchange rate). Dubai continues to be stable and supported by international visitors, while Australia is set to gain from a larger store footprint.

Cyrille Fabre, Partner and leader of Retail, Bain & Company Middle East, claimed: "The GCC market was secure with some recovery from in 2014 driven by Tourism invest and on the internet spend which currently represents practically 5% of the regional luxury market (e.g. ~$ 400m)".

Four Trends Shaping Personal Luxury Goods in 2018

Bain & Company's research study recognizes 4 fads that will drive the luxury market in 2018 and past:.

Chinese customers in first place: Chinese customers will be a key race driving the growth of the luxury market. Buyers of luxury in China are young, significantly fashion-savvy and cognizant of the price-value equation.

Click, Click, Click: Online continuouslies push on as borders obscure with standard physical channels. Social media site continues to influence purchases especially for more younger consumers.

Casual and streetwear: Streetwear groups experienced standout development in 2017, driven by casualization of workplace clothing and more youthful buyers of luxury goods. This section remains a key bar to draw in new customers.

Consolidating new normal: Quantity is driving market development, not simply rate boosts. Currency exchange rate changes are rearranging spend amongst regions yet not influencing global growth.

Development anticipated to pick up and drive industry to new elevations.

Looking ahead to 2025, Bain & Company expects growth to pick up to 4-5 percent annually (at continuous currency exchange rate) increasing the marketplace dimension to EUR366-390 billion.

Luxury brands should view themselves as the masters of their own destiny, said Bain & Company partner and report co-author Federica Levato. Customers are responding to targeted strategies, and top performing brands are already winning over the customers of tomorrow.