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Global challenges for luxury

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In a year marked by economic uncertainties and geopolitical crisis, luxury goods market is accounting for about € 1.081 billion, with a growth of 4% at constant exchange rates. Consumptions within the ‘personal luxury’ sector register a short decrease, even though they should raise again in 2017, accounting for +3% for apparel industry and +3% for accessories. Data come from Osservatorio Altagamma 2016, an annual report portraying the performance of the highest segment within the market.

During 2016, the top-of-the-range products’ industry had to face the decrease of purchases by Chinese citizens, who have been representing the first country consuming luxury, for many years. In addition, we have to consider the fall of touristic flows in Europe and the euro’s less favourable exchange rate compared to last year. Nevertheless, the sector has grown by 4%. For Andrea Illy, president of Fondazione Altagamma, “Our industry is going through a effective change of paradigm: retail and distribution models are evolving, consumers are changing as well companies’ governance. Today, more than ever before, we should safeguard our intrinsic competitive advantages: our natural and artistic beauty heritage, the aesthetic and stylistic sensitivity, handmade and technical competences of our pipelines”.
Michele Norsa too, consultant and former CEO of Ferragamo, has talked about challenges for Italian high-end market companies, during a conference organised by Pambianco and Deutsche Bank: “In my opinion, today the challenge is global, with more and more complicated consumers, with an extraordinary purchasing power and moving worldwide. I am thinking about China and the USA and about millennials and that “generation two” comprising 316 million young people who were born after 1982”.

Biella, November, 23rd 2016

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