High range on the increase: +4% in 2019 for jewellery and watches
The 17th edition of the annual Osservatorio Altagamma provides a picture of the situation and prospects for the sector’s highest segment: +5% thanks to the Chinese market and new generations
Despite extreme international uncertainty, luxury goods confirm the 5% increase that began in 2017 mainly due to the Chinese market and new consumer generations. This is what emerges in regard to high range goods that continue to sail smoothly despite uncertain circumstances, customs duty wars and geopolitical crises within the international environment, going against the trend to reach a total market value of around 1,200 billion Euros in 2018, a 5% growth at constant exchange rates.
The assessment is the result of an annual study carried out by Osservatorio Altagamma - Altagamma Worldwide Market Monitor 2018 – which estimates that the Personal Luxury sector will record an even greater growth of +6% equal to an overall value of 260 billion Euros.
The forecasts for 2019 speak of a healthy increase of around 5% in personal luxury goods consumption.
China has been, and is still, the sector’s main growth driver for the last ten years, while purchases in Europe, which has suffered from drops in tourist flows, have experienced moderate growth. On-line channel sales (10% of the total) and purchases by the new generations (Y and Z), the only age-groups to have generated effective consumer growth, have made the difference.
Jewellery and shoes are the categories of major growth, while clothing, after years of shy yet solid growth, shows a slight downturn (-1%) mainly due to a slackening regarding the big names in affordable luxury, especially in the menswear segment.
2019 will confirm a solid +5%: the highest growth will be in leathers, footwear and accessories (+7%) followed by perfumes and cosmetics (+ 5%). A good increase too for Hard Luxury, while clothing will be more contained (+2%). Next year’s forecast for the jewellery and watch sector particularly stands out at +4% together with a growth in luxury goods consumption on the markets.