The Global Luxury Market Will Reach 1 Trillion And 260 Billion Euros In 2019.

In November 28th, Bain consulting and the Italy Luxury Association released the "2019 global luxury market monitoring report" (short for "report"). According to the report, the size of the global luxury market is expected to increase 8% from last year to 1 trillion and 260 billion euros in 2019. The global total consumption of personal luxury goods is expected to grow by 7% to 281 billion euros, mainly due to the contribution of the Chinese market and young consumers. In addition, the secondary luxury market has maintained a good growth rate.

It is noteworthy that the 90% growth of the global luxury market benefits from the contribution of Chinese consumers. According to the report, the size of China's luxury market in 2019 is expected to grow by 26% to 30 billion euros on fixed exchange rates, and more and more Chinese consumers choose to buy luxury goods in the mainland. At the same time, their overseas purchasing power is still strong. In Italy, 35% of the luxury goods consumers come from China.

However, another research institution, Sanford C.Bernstein, is worried about the Chinese market. Luca Solca, an analyst at the agency, said: "the further reduction of consumer demand in China's wealthier class may weaken the growth prospects of luxury companies."

In terms of young consumers, young people represented by millennial generation and Z generation control the growth of the global luxury market. The report shows that millennial consumers are expected to occupy 50% of the global luxury market in 2035. In addition, compared with other markets, the average age of the top Chinese luxury brands is the smallest.

The important market position of young consumers makes luxury brands have to cater for their sales strategy, to a certain extent, leading to brand attention to social media, fashion KOL and other digital marketing tools. The online shopping channels used by young people have also become the fastest growing channel for luxury goods sales, and Asian regions are the best sellers of luxury brands.

As for the reason why young Chinese consumers are active, McKinsey consultancy released China luxury report 2019 in April this year. Luxury goods are the social capital of the younger generation in China, reflecting the lifestyle choices and self-worth identification of this generation. The report also points out that the purchasing power of Chinese young people is attributable to the rapid growth of families in the middle class and above middle class. 2/3 of the 90% of respondents said their parents would pay for their luxury consumption.