Global sales of personal luxury goods are forecast to contract for the second straight year, as well-heeled shoppers rebel against extravagant price hikes on ho-hum offerings and global turmoil shakes confidence, according to a new study by the Bain & Co. consultancy released on Thursday.
Sales of high-end apparel, footwear and handbags are expected to drop 2% to $412 billion this year, Bain said in its semiannual market update for the Altagamma association of Italian luxury producers.
The dip would mark the first two-year slowdown since the 2008-09 global financial crisis.
“It is not a disaster scenario, yet you see consumers are trading down to accessible brands, not because they don’t have the money but because I think they are looking for something that is more ethical in the value-price proposition,’’ said Bain partner Claudia D’Arpizio, who co-authored the study.
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