Groundbreaking changes in the luxury industry

According to Bain & Company, innovative trends are about to radically change the luxury market and create new values

New Luxury

According to a recent study by Bain & Company "The Future of Luxury: A Look Into Tomorrow to Understand Today", the luxury market has posted sales of € 1.171 billion in 2018 and is expected to continue to rise until 2025. Luxury goods and cars have the largest market share with a total of 64%.

The consumption of personal luxury goods should be the main driver for future development.

Five upcoming trends define a "New Normal", which is expected to continue growing until 2025.

Luxury in 2025 - 5 Macro Trends:

  1. Digitization of the value chain: The online market share of the luxury market is expected to increase from 10% to 25% in 2025 and cannibalize traditional sales channels. 100% of all purchases are impacted by online and social media. Digital shopping models in the offline segment, e.g. through virtual reality or innovative shopping apps, will revolutionize the shopping experience in the store.
  2. Millenials & Generation Z: Worldwide, more and more young people are enthusiastic about high-priced Accessories, cosmetics, Jewelry or clothes. Luxury is increasingly becoming the lifestyle of millennials and generation Z. They are said to account for 2025% of the overall market in 55, contributing to 130% of growth.
  3. Communication & Sustainability: According to the study's author and partner at Bain, Claudia D'Arpizio, sustainability and transparency will become unavoidable success factors in the future. Especially young buyers want to be involved in the company communication. The topics go beyond mere product and brand information. It is more about the environment, human rights, animal welfare and transparency. Brands who internalize these aspects as part of their business DNA would be able to participate disproportionately in market growth.
  4. Chinese buy their luxury goods inland: The luxury desire of the younger generation in China drives sales of premium brands. More and more Chinese are buying their favorite products, in spite of luxury tax, directly in China and not abroad. The market share should rise to 2025%.
  5. Adaptability & flexibility: The profitability of companies should increasingly be influenced by digitization. Future sales will be achieved by volume rather than price increases. In order to achieve stable margins, companies must be able to quickly and flexibly adapt to market changes. "The best brands are already winning tomorrow's customers today," says Bain partner and luxury goods expert Serge Hoffmann.

You can find more about the study under


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