Growth of the global luxury goods market in 2022, despite inflation and the Ukrainian war

A new study concludes that inflation and the war in Ukraine have not affected the global luxury fashion market.

Even as the world faces higher fuel and energy prices, a study by Bain & Company Consulting found that the global luxury market continues to grow, driven largely by the continued resilience of the world’s richest people.

The global luxury market grew by about a third to 288 billion euros last year, recovering from its worst downturn during the coronavirus pandemic shutdown in 2020, according to a study by Italy’s Altagama Association, which includes luxury goods manufacturers.

According to Payne’s research, sales of luxury goods such as clothing, accessories and footwear rose by double digits in the first quarter of this year, despite initial signs of an economic downturn due to Russia’s military operation in Ukraine.

In its most pessimistic outlook, and assuming global inflationary pressures, Bain had expected personal luxury sales to rise by just 5 percent this year to around €305 billion, but it also forecast a 15 percent rise if current trends continue. bringing the market up to 330 billion additional euros next year.

This year, the United States and Europe have accelerated the growth of the luxury goods market, while sales in China are expected to decline due to Covid-19 restrictions in major cities.

Source: AB

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