Luxury sales flattening amid self-inflicted creativity crisis, price hikes

The post-pandemic surge in global sales of luxury handbags, shoes and apparel is set to stall this year amid a creativity crisis and price hikes as brands shift focus to the biggest spending customers, a new study by the Bain consultancy said Tuesday.

Bain is forecasting flat worldwide luxury sales in 2024 following a slight first-quarter dip, according to the study commissioned by the Altagamma association.

The consultancy cited political uncertainty during a presidential election year in the United States as well as economic uncertainty in China that has brought on a phenomenon of luxury shaming."

Beyond socioeconomic factors and rising geopolitical tensions, the slowdown is also partly self-inflicted,' said Bain partner Claudia D'Arpizio.

She cited a creativity crisis,' in the sector, as a number of major fashion houses are transitioning creative directors, and a new focus on the super-wealthy customers, at the expense of the aspirational middle class and Gen-Z youngsters who ..