“We will not see double digit growths in the sector anymore”, sentenced Joëlle de Montgolfier, Bain&Company analyst in the regions of Europe, the Middle East and Africa.
Luxury leaves behind the era of double digits growth. The high-end sector will grow a 7% this year at constant exchange rates but will slow down until 4% or even 5% in the next years, according to the predictions made public by Bain&Company.
The consultant company has anticipated in an event in Paris several facts from its report on the luxury sector, which will be published during the next weeks. Concretely, Bain estimates the sector to obtain 280 billion euros of revenue this year, partly due to the recovery of continental China.
Nevertheless, the consultancy warns about the impact of volatile exchange rates, which could make growth rates stand at between 6% and 8%. In any case, the raise estimated for this year is above the one ranked last year, when the sector grew a 5%.
“We will not see double digit growths in the sector anymore”, claimed Joëlle de Montgolfier, Bain&Company’s analyst in the region of Europe, the Middle East and Africa. The expert also highlighted the risk that the maintained growth of the sector restricts brands from seeing “how urgent it is for them to change their business model”. “We continue to surf the wave but fail to understand that this wave will not carry the whole world forever”.