Global Luxury Sales Face Roadblocks Amid Creativity Crisis and Price Hikes

Post-pandemic luxury sales are expected to stall due to a creativity crisis and price hikes. A Bain study forecasts flat luxury sales in 2024, citing political uncertainty, economic instability in China, and a shift towards the super-wealthy consumers. The middle class and younger generations are being sidelined.

A recent Bain consultancy study, commissioned by Altagamma, reveals that the post-pandemic surge in luxury goods sales is set to stall this year. The forecast of flat global luxury sales in 2024 follows a first-quarter dip and highlights a troubling creativity crisis amidst price hikes.

Bain partner Claudia D'Arpizio pointed out that luxury brands have shifted their focus towards their wealthiest customers, neglecting the aspirational middle class and Gen-Z consumers who previously fueled growth. 'This is a supply-driven industry,' she added, emphasizing the need for quick adjustment to customer needs.

On the economic front, political uncertainty in the U.S. amid election year and economic instability in China contribute to the slowdown. Furthermore, steep price increases on items that show little innovation leave customers 'upset and puzzled.' As brands reorient their strategies and price points, the luxury market will need to balance between exclusivity and broader appeal.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)