MILAN (AP) — The post-pandemic surge in global sales of luxury handbags, shoes and apparel is set to stall this year amid a creativity crisis and price hikes as brands shift focus to the biggest spending customers, a new study by the Bain consultancy said Tuesday.
Bain is forecasting flat worldwide luxury sales in 2024 following a slight first-quarter dip, according to the study commissioned by the Altagamma association. The consultancy cited political uncertainty during a presidential election year in the United States as well as economic uncertainty in China that has brought on a phenomenon of “luxury shaming.”
Beyond socioeconomic factors and rising geopolitical tensions, the slowdown is also partly “self-inflicted,’’ said Bain partner Claudia D’Arpizio.
She cited a “creativity crisis,’’ in the sector, as a number of major fashion houses are transitioning creative directors, and a new focus on the super-wealthy customers, at the expense of the aspirational middle class and Gen-Z youngsters who fueled growth before the pandemic.
“There is a lack of clarity for many of these brands. They are making attempts to regain focus. It is five, six brands under turn-around, big ones. This is not helping the overall excitement,’’ D’Arpizio told The Associated Press. “This is a supply-driven industry. When you have the brands really in tune with customer needs, it usually reacts quickly.’’