The personal luxury market has been traditionally subject to bigger swings than the sporting goods market in their competition for the consumer’s spending, and its recovery this year may impact the recovery of the sporting goods market, especially in the overalapping areas of sneakers and athleisure, in our opinion.
The global revenues of the personal luxury goods industry are forecast to grow by 29 percent at current exchange rates to €283 billion this year, according to a survey released by Bain & Company in collaboration with Fondazione Altagamma, the Italian luxury goods industry’s foundation. Compared with 2019, the personal luxury market is expected to rise by 1 percent this year, after a big drop of 22 percent in 2020. At constant currency rates, market growth is estimated to go up by 31 percent year-over-year and by 4 percent versus 2019.
Claudia D’Arpizio of Bain & Company has told fashionnetwork.com in an interview that new generations are quickly coming into the market, and that 30 percent of new consumers are entering the sector by buying sneakers or other products that they use on a daily basis, allowing luxury labels to retain them afterwards.
Bain’s report also forecast that the luxury goods industry’s average margin for earnings before interest and taxes will almost double in 2021 to 21 percent, in line with 2019.
Bain estimates that the market could reach €360 billion to €380 billion by 2025 with a sustained annual growth of 6 to 8 percent. In 2020, the market fell to €220 billion from €281 billion in 2019 due to the Covid-19 pandemic. The overall luxury market, encompassing both wider luxury goods and experiences such as tourism, is estimated to remain below 2019 levels, reaching a level of around €1.1 trillion this year. More in Shoe Intelligence.
