The *2017 Global Luxury Goods Study Report* released by Bain & Company shows that in 2017, the sales of the global personal luxury goods market hit a record high, reaching 262 billion euros, and 32% of the sales came from Chinese consumers.
The Bain report indicates that the Chinese luxury goods market grew by as much as 15% in 2017, with the total market size reaching 20 billion euros. Millennials (aged 20 to 34) are the main driving force for the growth of the luxury goods market in mainland China. They are fond of "fashionable", "street casual", "new trendy" and "in-season" products. In addition, in China's Hong Kong and Macau regions, due to the market recovery, the luxury goods market has entered a positive growth range, with the market size reaching 36 billion euros.
Global personal luxury goods market sales hit a record high
The report further notes that online sales have a strong momentum, and sales surged by 24% in 2017. Bain estimates that by 2025, online sales of personal luxury goods will account for 25% of the total market sales. Bruno Lannes, global partner of Bain & Company, said: "The remarkable growth of online channels does not mean that physical stores have lost their meaning of existence. Brands should reshape physical stores to maintain continuous and cross-channel interaction with consumers."
Regarding the future development of the luxury goods market, Bain predicts that the current positive growth trend will continue, with an average annual growth rate of about 4% to 5% in the next three years, and the size of the personal luxury goods market will reach 295 billion to 305 billion euros by 2020.