As per the Bain-Altagamma 2019 Worldwide Luxury Market Monitor, the global luxury market grew by 4 per cent in 2019 with Asia contributing most to the growth of this market. The study reveals that the size of the global personal luxury goods market was pegged at € 281 billion in 2019. Of this, Mainland China’s luxury market grew the most bgy 26 per cent at constant exchange rates this year to reach €30 billion. Fuelled by favorable government policies and lower price differentials, Chinese customers accounted for 90 per cent of the constant growth of the market in 2019.
Luxury consumption in Hong Kong was adversely hit by the ongoing protests. The luxury market in the country declined 20 percent to €6 billion. The Hong Kong luxury landscape will reach a new equilibrium, with rules of the game deeply transformed and local customers becoming the main focus according to the report.
Meanwhile, Chinese buyers of luxury turned their sights to other Asian destinations, boosting the performance of these markets. Japan grew by 4 per cent at constant exchange rates to €24 billion while the rest of Asia grew by 6 per cent at constant exchange rates, reaching €42 billion.
Europe experienced a slow growth of 1 per cent at constant exchange rates with the market reaching €88 billion in size. Driven by tourism and weak currency, Spain and the UK were among the top performers. Germany was impacted by a slowing country dynamism and France by social unrest earlier in the year. Other geographies, which account for €12 billion, experienced a 5% decrease at constant exchange rates. The Middle East, aside from a hesitant recovery in Dubai, was a subdued market affected by lower consumer confidence and geopolitical uncertainties.