PARIS (Reuters) – Luxury brands that focus on affluent consumers are doing better in the U.S. than those that appeal to lower-income shoppers put off by economic uncertainty, consultancy Bain & Company said. .
In its biennial report, Bain raised its annual sales forecast for the global personal luxury goods market (covering apparel, % this year, compared with previous expectations of 3% to 8%.
Now that the COVID-19 lockdown has been lifted, China is seen as the main driver of economic growth, however, echoing the company performance of retailers over the past few weeks, Bain & Company pointed to further evidence, It suggests that the strong post-pandemic spending boom is waning in the United States.
“The overall slowdown is mostly due to consumer desire and higher entry prices, so categories like streetwear and sneakers are doing a little bit underperforming as we speak,” partner Federica Levato told Reuters society.
“The brands that are able to meet the needs of the top customers … are the ones that perform better than the rest,” she added, noting the difference between the two in the market Better performing brands and less successful brands.
Many premium brands are shifting their sales strategies or moving upmarket to cater to the wealthiest customers, who are seen as more resilient to economic headwinds as younger shoppers and incomes Compared with the taller older generations, they face greater price pressures.
For example, high-end fashion retailer Hugo Boss last week raised 345 and 345 sales and profit targets, indicating that the U.S. The market continues to grow strongly and revenues are expected to grow in the Asia Pacific region.
Lovato said there was still interest there, although there were “some doubts” about China and sales growth among the middle class could be slowing. According to Bain & Company, luxury goods sales were 345 billion euros last year.