The market for luxury clothing does not appear to be in danger from either inflation or the conflict in Ukraine.
MADRID (AP) — According to a survey released on Tuesday, neither inflation nor the crisis in Ukraine poses a threat to the market for luxury clothing.
The analysis by Bain & Company consultancy showed that the global luxury industry remains set for growth, in large part because of the sustained resiliency of the world’s wealthiest individuals, while much of the globe is concerned about increased gasoline and energy prices.
According to a survey commissioned by Italy’s Altagamma organization of high-end companies, the global luxury market increased by over one-third to 288 billion euros ($198 billion) last year, recovering from its greatest recorded slump caused by the 2020 pandemic lockdowns.
Despite the initial indications of economic unease related to Russia’s invasion of Ukraine, sales of personal luxury items, including garments, accessories, and footwear, increased by a high double-digit rate in the first quarter of this year, according to Bain.
In its most negative outlook, Bain projects that sales of high-end personal products will increase by 5% this year to reach roughly 305 billion euros, assuming pressure from global inflation. If the current trends continue, the consultancy does see a case for up to 15% growth, which would bring the market to 330 billion euros in 2019.
Growth has been enhanced so far this year in the United States and Europe, but sales in China are anticipated to abruptly end due to COVID-19 restrictions in important locations.
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