The sector is estimated to reach 1.26 billion euros by the end of this year, according to the Worldwide Luxury Market report by Altagamma and Bain&Company.
Luxury sales continue to rise. For 2019, it is estimated that the sector will reach a market value of 1.26 billion euros, up 8% from the previous year, according to the Worldwide Luxury Market report by Altagamma and Bain&Company. In 2018, the sector grew 5%.
China will continue to be the region that drives the growth of the luxury market in 2019, when it will register an increase of 30%, followed by the rest of Asia and Japan. In Hong Kong, luxury sales have fallen by 2 billion euros due to social protests.
Ecommerce continues to be the most dynamic distribution channel, with a 22% increase, boosted by consumption in Asia. Retail, meanwhile, continues to consolidate and will peak in 2020, according to the report.
Millennials and Gen Z will drive luxury sales in 2019
Millennials and Gen Z are the consumers that have contributed most to the growth of the sector, according to the report. They are expected to reach 50% of the market value by 2035.
Footwear and jewelry will be the luxury categories that will grow more in 2019, with a growth rate of 12%, reaching sales of 21 billion euros in each segment. Specifically, footwear was driven by the sale of luxury sneakers, especially in Asia, in addition to collaborations between luxury brands and streetwear.