Sales in the Americas were relatively flat or slightly down, around €100 billion, reflecting a cautious consumer sentiment and fewer high-end impulse purchases.
A dominant theme throughout the report is the powerful consumer shift from owning goods to having experiences. As the report details, "luxury experiences maintained faster-than-average growth as consumers continued to move their spending to travel and social events". This includes luxury hospitality, cruises, and fine dining, driven by a post-pandemic desire for social connection and personal wellness.
2024 Global Luxury Spending Overview ┌──────────────────────────────────────────────────────────────────┐ │ Total Market: ~€1.5 Trillion │ └────────────────────────────────┬─────────────────────────────────┘ │ ┌───────────────────────┴───────────────────────┐ ▼ ▼ Personal Luxury Goods Luxury Experiences (Fashion, Bags, Watches) (Cruises, Hospitality, Fine Dining) ▼ Decreased by 2% ▼ Robust, Positive Growth The report segments this macroeconomic divide clearly:
Personalization is no longer optional—it's critical. The Bain report highlights that for all customer segments, it will be essential to "double down on personalization, leveraging technology to achieve it at scale". Furthermore, with mounting pressure on profitability, technology will be a key lever for "tech-enabled flawless execution" and performance improvement, helping brands operate more efficiently and deliver a seamless omnichannel experience. bain luxury report 2024 pdf
Price fatigue, shrinking consumer base, and lower consumer confidence. Strong positive momentum
This underperformance has a direct impact on profitability. The report notes that "the average profitability of personal luxury goods brands eroded, reflecting the limited room for further price increases and rising costs of serving the consumer". Profit margins fell as brands faced higher operational costs and a consumer base less willing to accept endless price hikes.
: Led global growth (+12% to 13%) due to a weak yen attracting high tourist spending. : Experienced a sharp decline of 20% to 22% Sales in the Americas were relatively flat or
Brands must adapt to the new reality of the Chinese market, which is expected to see a slow recovery driven by a growing middle class and economic structural adjustments.
In an increasingly competitive and fragmented market, simply having a product isn't enough. Brands need to build meaningful and culturally resonant connections with their customers. This means engaging with the evolving values of consumers, particularly Gen Z and millennials, and ensuring the brand experience is relevant, exciting, and personalized across all touchpoints.
Luxury in Transition: Securing Future Growth - Bain & Company This includes luxury hospitality, cruises, and fine dining,
As mentioned, the full slide deck is proprietary. However, you can access the official summary and methodology:
How consumers buy luxury goods is changing as fast as what they buy. The most notable shift is the rise of , which are outperforming full-price locations as shoppers seek better value. Simultaneously, the secondhand market is gaining significant traction, particularly for jewelry, heritage apparel, and leather pieces, as value-seeking consumers find appeal in pre-owned goods. Furthermore, online channels are now normalizing after the post-pandemic swings, moving toward a more stable trajectory. Consequently, brands are increasingly focusing on creating immersive, personalized, and brand-curated in-store experiences to drive traffic back to their physical locations.