Watches and jewelry are among the top performers in the current global luxury landscape, according to a new report from global consultancy Bain & Co.
It said the global luxury market was worth a record €1.5 trillion ($1.6 trillion) last year after demonstrating “remarkable stability” in the face of geopolitical and economic turbulence.
The firm said jewelry was presently surpassing watches in growth and showcasing strength in both uber- and entry-luxury segments, with consumers making investment-led purchase decisions.
Meanwhile, aspirational consumers are also redirecting spending toward makeup, fragrances, and eyewear, viewed as small indulgences.
Simultaneously, apparel has outgrown accessories on an elevation strategy aimed at capturing the attention of top-tier customers, with shoes suffering from a slowdown among aspirational shoppers.
“A dual strategy, framed around the allure of top-tier clientele and the appeal of smaller luxury indulgences, is driving growth at both ends of the price spectrum,” said Federica Levat, partner at Bain & Co and leader of the firm’s EMEA Luxury Goods and Fashion practice.
“But now is not the time to for brands to rest on their laurels. As brands continue to face turbulence in the market, the winners will be those that rethink the way they craft and deliver their value propositions across multiple price points and touchpoints, growing their reach while building advocacy and loyalty among their customers.”
As they continue to navigate uncertain times, brands will need to invest in growth enablers, defend core business elements, maintain agility in decision-making, and optimize stock management to ensure efficiency and responsiveness to market demand, added Levat.
Bain & Co said that a resurgence of luxury travel and a robust US holiday season in the fourth quarter was behind the growth seen in the global luxury market last year.