The luxurious Bain & Co report shows that personal commodities shrink last year

These companies have no time to waste. According to the Bain & Co Spring, the industry loses speed at a relative speed.

The study, which was released on Thursday, showed that the value of the sector was 1.5 trillion euros ($ 1.7 trillion) in 2024, although Q1 estimates from 2025 decreased by 3 % compared to last year.

Until last year, Personal luxury goods One of the categories that characterized the most prominent slowdown, caused 369 billion euros in 2023 to 364 billion euros in 2024. This was its first 15 -year shrinkage – with the prominent of the epidemic.

The gap between the winners and losers in the luxury sector also added, and added the book Claudia Darbizio and Federica Levato.

The gap between centenary 75 higher and lower centenary artists increased by 25 times in the first quarter of 2025 compared to the previous year, as market leaders continued to ship while 20 % to 30 % of the sector lasted to report a decrease in growth.

Part of the problem is that consumers wander with what Bain & Co describes as a “value equation” – significantly, do they get enough – whether it is experience, social and cultural glory, or workmanship – from purchasing the high price they pay?

For a “long period”, luxury brands were trying to enlarge its customer base to be more comprehensive, says d’arpizio luck. This has already been strengthened in some categories with “entry elements such as street fashion, sports shoes and even beauty – all groups that could have been more important for young people, but also with people with less estimated spending.”

She added that this strategy was “corrected”, where brands depend excessively on design or distinctive experiences, which reduces the frequency of innovation, and therefore, which causes consumers to question If their spending is really worth it.

“Last year, we suffered a significant loss to customers – after 50 million customers buying a luxurious product – in particular in the youth generation, and a significant decrease in calling to customers,” D’Apizio continued. “What is happening now after brands try to fix this, and try to redesign this relationship with these customers without losing their exclusivity.”

Excellence in the Internet age

Moving to exclusive is more difficult when younger consumers are known as social media generation for their online publication.

Galas days have come with no cameras, from the rear rooms designed handbag with no permitted photography: Everything is available on a page for you within moments of the end.

“Luxury has always been to appear,” D’Arpizio continued, the Bain & Co International Fashion offers, luxury vertical goods. “The previous generation was showing wealth and showing achievements in life, and now it is more likely to be your personality Or your ability to choose your aestheticsThe quality of your life.

“There is a big need, especially in Gen Z, to participate. This participation means expressing her personality … but also a desire to match. They are

“Social media has provided a great motivation for luxury consumption because the potential for participation with a larger audience has created more customers, but also in increasing their communication strategies, and therefore they have wider access.

“Yes, they want to be exclusive, but they know the strength of social media.”