The Altagamma Observatory 2017, the annual conference that provides a snapshot of trends in the luxury segment of the market, took stock of the current state of health of the industry: following a 2016 of ups and downs, this year we can expect to see growth of 5% in both personal luxury goods and experiential consumption.
The luxury market has bounced back from a stagnant 2016 caused by economic uncertainty and geopolitical crises and is now worth around €1,160 billion, with growth of 5% at constant exchange rates.
There has been a similar level of growth in consumption in the Personal Luxury segment, which is now worth €262 billion.
There is also expected to be growth in the consumption of personal luxury goods in 2018 with a forecast average increase of around +5%.
The recovery of the segment is partially down to a general increase in consumer confidence: this factor has driven local consumption among Europeans, Americans and Asians, as well as the purchases of Chinese travellers. Another crucial aspect is the return of tourists to Europe with numbers 11% up on last year. In addition to this there is the constant growth in the online channel, a market now worth the same as the Japanese market.
During the conference held at the Unicredit Pavilion in Milan, the current situation in the luxury industry and markets was illustrated by the Altagamma Worldwide Market Monitor 2017 (presented by Claudia D’Arpizio and Federica Levato, Bain & Company), Tax-Free Consumption in the European Union 2016 (Pierfrancesco Nervini, Global Blue) and Altagamma Consensus 2018 (Armando Branchini, Altagamma Foundation) studies.
Present and future scenarios and prospects were then discussed by Andrea Guerra of Eataly, Vittorio Ogliengo of UniCredit, Carlo Mazzi of Prada and Massimo Piombini of Balmain, in a session of talks moderated by Armando Branchini and Claudia D’Arpizio.
Main findings on the studies are available in the press release. Full reports are reserved to Members only in the dedicated section of the website.
