The consumption of luxury goods will increase in every respect on a global scale. From material goods to experiential ones (such as holidays). And it will be consumers who will drive growth. The 380 million who today spend around 730 billion euros will become 440 million in 2020, for a total expenditure that will exceed 880 billion. The data emerges from the "True Luxury Global Consumer Insight" study, carried out by the Boston Consulting Group in collaboration with Exane Bnp Paribas and presented at the Altagamma Consumer and Retail Insight conference.
“The luxury sector will continue to grow – explains the managing director of the BCG Antonio Achille – but in a different form and in an organic way, with the same stores. The changes in consumer behavior will have a major impact on over 100 billion euros of investments in the sector”.
Growth driven by "core" consumers is expected: by 2020 they will increase by 10 million compared to the current 32 million, with a market growing by 85 billion euros. Aspirational consumers, on the other hand, will go from the current 350 million to 400 million, with a market that will rise from 470 to 535 billion. Rising numbers also for the retail development of luxury companies.
According to the "Altagamma Retail Evolution" study carried out together with Exane Bnp Paribas, direct distribution will go from around 30 to around 40% of the total and wholesale will remain at 36%, while franchising will drop from 10 to 6% and department stores from 23 to 19%. The consumption of high-end personal goods will increase from 217 billion euros in 2014 to 310 billion in 2020, as will single-brand stores, which will increase from 12.500 to approximately 16.000.
