IES's Management College and
Research Centre

Luxury Market Trends Across the Globe

By
Dr. Suhas Pai (Professor- Marketing & Strategy)
April 10, 2023

RECESSION IMPACT ON LUXURY - In 2023, the global recession impact would be lesser on luxury market because of top end customers who are less sensitive to downturns.

MARKET SIZE OF LUXURY- The customers of luxury goods will increase from 40 crore in 2022 to 50 crore by 2030.Top end customers contributed 40% of market value in 2022 compared with 35% last year. These top end consumers are hungry for unique products and experiences.

COUNTRWISE PERFORMANCE - The USA market did well in 2022. Europe did well despite Covid 2019 because of shoppers from USA & Middle East.

Chinese market was adversely affected in 2020 & 2021 because of Covid 2019. Luxury market in China grew by 18% in 2022. China’s luxury market is expected to recover by the second half of 2023. In 2022 Japanese luxury market increased by 7%.

In 2022 Indian luxury market grew by 8%. Even though India constitutes only 2% of global market its luxury market could expand to 3.5 times today’s size by 2030, propelled by younger customers and an expanding upper and middle class.

FUTURE TRENDS IN LUXURY- Following are the future trends for the luxury market across the globe.

1.     Future is female

2.     Young customers

3.     Dominant China

4.     Immortal brick & mortar

5.     Affordable luxury

6.     Premiumization

7.     New cities

8.     Storytelling

9.     Cultural sensitivity

1.     Future is female- In future majority of luxury buying decisions will be taken by females. e.g. In India female employment rate has gone up to 25% in 2020-21 from 19% in 2018-19.

2.     Young customers- According to Bain & Co. by 2025, millennials (1981-96) & Generation Z (1997-2012) together will account for 75% of luxury purchases. Absolut luxury (Term coined by Bain & Co. for very high- end brands i.e. Hermes in handbags & Patek Philippe in watches) will attract young consumers

3.     Dominant China- By 2025, Chinese consumers will constitute at least 50% of the global luxury market. 75% of sales of Chinese customers will come from China.

4.     Immortal brick & mortar- Luxury will be one of the few sectors to focus on physical interaction rather than online transaction. In future maximum 20% of the sales will happen online for the luxury goods. Luxury stores will be the third places for learning & entertainment.

5.     Affordable luxury- This is also described as accessible luxury, democratic luxury or masstige. e.g. In India a leather accessory brand Hidesign is considered a affordable luxury brand.

6.     Premiumization- This term is coined by the spirits industry to describe trading up i.e. increasing the price. e.g. In 2022, Starbucks opened 5200 square feet Starbucks Reserve in Fort area of Mumbai which serves exclusive food & has a cocktail bar.

7.     New cities- According to Mckinsey report luxury brands are looking at underexplored places to increase their sales. e.g.- Luxury brand doubled their outlets in Chengdu & Nanjing of China.

8.     Storytelling- Storytelling can be done by company’s history culture, employees, customers and celebrities etc. e.g. According to advertising research agency BrandTotal report (2022) top 3 brands involved in storytelling were Louis Vuitton, Gucci & Chanel.

9.     Cultural sensitivity- In future brands will have to be very sensitive to the local culture. e.g. In 2018, in China , D&G had put a video of Asian woman struggling to eat Italian food. Because of this there was a adverse effect on sales of D&G.

‍

Read more

Transforming Finance Education: The IES MCRC Bloomberg Lab Advantage

A strong foundation in financial literacy and management is essential for any aspiring professional in today's fast-paced and constantly-evolving corporate landscape, especially for those pursuing a career in business and finance. Mumbai's IES Management College and Research Centre (IES MCRC) is a well-known institution that has long led the way in giving students a thorough education that equips them for the challenges of the financial industry.

November 3, 2023

The Function of Internships in IES MCRC's PGDM Program

At the Bandra, Mumbai-based IES Management College and Research Centre (IES MCRC), internships are a crucial component of the PGDM program. They give students a special chance to connect the dots between what they learn in the classroom and how businesses actually operate in the real world. In this blog article, we'll examine the significant impact internships have on your PGDM experience at IES MCRC and how they can help you launch a lucrative career.

October 13, 2023

Bharat's Successful G20 Presidency Yields Key Takeaways

The 18th G20 Leaders' Summit took place in New Delhi, Bharat, concluding on September 10, 2023. This gathering brought together leaders from the world's 20 largest economies to discuss critical global issues, including the global economy, climate change, food security, and global health.

October 15, 2023

The Significance of Hosting the G20 Summit for India: A Strategic Analysis

In the realm of global diplomacy and economic cooperation, the G20 Summit reigns supreme as a distinguished platform for world leaders to converge, deliberate, and shape crucial international agendas. For India, hosting the G20 Summit signifies not just a ceremonial event, but a strategic juncture to display its global eminence, foster economic advancement, and forge diplomatic alliances.

September 1, 2023

Drawing Parallels: Chandrayaan-3 Mission and Management Principles

In the world of management education, learning from diverse spheres can spark creativity and offer new perspectives. India's imminent Chandrayaan-3 mission presents a fascinating case study that mirrors key management principles. Beyond its contributions to space exploration, this mission holds lessons that resonate with students at our management college.

August 22, 2023

India's Rice Export Ban: Balancing Between Domestic Priorities and Global Impacts

In a surprising move, India, a prominent player in the global rice market, recently imposed a temporary ban on rice exports. This decision has sparked a flurry of discussions and debates about its potential consequences on various fronts. Is India's rice export ban a bane that disrupts trade and economies, or could it turn out to be a boom that fosters self-sufficiency and stability?

August 3, 2023

The Best Management Books of All Time

Management is an essential aspect of success in any organization or endeavor. Whether you're a seasoned executive, a budding entrepreneur, or someone looking to improve their leadership skills, books have always been a treasure trove of knowledge and wisdom. In this blog, we will explore some of the best management books of all time that have left an indelible impact on the business world and continue to inspire and guide generations of leaders.

July 26, 2023

Unlocking Real-World Impact: How MBA and PGDM Students Can Learn Through Travel

Aspiring MBA and PGDM students know that education extends far beyond the walls of a classroom. Travel presents a unique opportunity for them to explore real-world impact and gain invaluable insights. By venturing outside their comfort zones and immersing themselves in diverse cultures, business environments, and social contexts, students from top MBA and PGDM colleges in Mumbai, such as IES MCRC, can develop a deeper understanding of global challenges and cultivate a unique perspective on creating positive change.

July 16, 2023

Learnings from Today's Trailblazing Indian Entrepreneurs for Management Aspirants

The Indian startup ecosystem has witnessed an exponential rise in recent years, thanks to the visionary entrepreneurs who dared to dream big and took the plunge into the world of business. Their innovative ideas, perseverance, and customer-centric approach have transformed various industries, leaving a lasting impact on society. As management aspirants, there are numerous invaluable lessons to learn from the journeys of these trailblazing individuals – Akash Bansal, Aman Gupta, Deepinder Goyal, Ashish Singla, Kunal Shah, Bhavish Agarwal, Nithin Kamath, Nikhil Kamath, Ritesh Agarwal, and Vidit Aatrey.

July 5, 2023

How India-US Partnership, Led by Modi and Biden, Will Define the 21st Century

In a globally interconnected world, international partnerships hold the key to shaping nations and influencing global affairs. Among these influential alliances, the partnership between India and the United States, led by Indian Prime Minister Narendra Modi and US President Joe Biden, is poised to define the 21st century.

June 26, 2023

Decoding the Choices: MMS, MBA, and PGDM - Understanding Approvals, Seats and College Landscape in Mumbai

Choosing the right management course can be a daunting task, especially with the plethora of options available. In Mumbai, a city known for its educational institutions, one prestigious name that stands out is IES MCRC College.

June 16, 2023

How Can MBA Aspirants Evaluate Placements of Top Management Colleges in Mumbai

When it comes to pursuing an MBA or PGDM, Mumbai boasts some of the best management colleges in India. As an MBA aspirant, it's essential to evaluate the placements offered by different management colleges before making your decision.

June 9, 2023