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20 Jan, 2015

Luxury Industry: Lessons Learned From 2014 | Wealth-X

Last year was a mixed bag for the luxury industry. While certain sectors boomed, like ultra prime property in the US and super-yacht chartering in Europe, other segments suffered, like certain watchmakers, jewellers and high-end fashion brands. Luxury sales growth slowed to 5 percent globally – around €223 billion in 2014, down from 7 percent growth in 2013, according to Bain & Co. For the first time, luxury growth in China – the frontrunner of burgeoning luxury consumption – showed a negative trend, said Bain, due to the government’s anti-corruption drive and changing consumption patterns. It is no coincidence that some of the more ubiquitous brands like Gucci, Louis Vuitton and Hermès saw sales growth slow last year. Slower, steady growth will be the “new normal” this year, and even ultra wealthy consumers are on the hunt for ever-greater value for money.

The question is, how can luxury brands differentiate from their peers to gain market share amidst a changing appetite and growing sophistication and discernment amongst consumers?

Read the rest: Luxury Industry: Lessons Learned From 2014 | Wealth-X.