Global currencies seesawed in 2015 and the unexpected shifts shook up the luxury goods sector.
In Bain & Company’s latest luxury study titled, “A time to act—how luxury brands can rebuild to win,” analysts said personal luxury goods brought in 250 billion euro ($272.3 billion) in sales last year, 13 percent growth at current exchange rates, but real growth was a much slower 1 to 2 percent.
“The slowdown conﬁrms a shift to a ‘new normal’ of lower sales growth in the personal luxury goods market, which we highlighted in previous analyses,” Bain noted in the report published for Fondazione Altagamma, a trade association of Italian luxury goods manufacturers. “The challenge for luxury brands in this environment is to successfully navigate market volatility driven by currency swings and ﬂuctuating tourist ﬂows.”
Read more at Sourcing Journal.