08 December 2023, Mumbai
McKinsey's State of Fashion 2024 report
Luxury's Remarkable Recovery:
36% profit increase in 2023, surpassing all other segments.
More than doubled economic profit compared to 2011–2020.
Demonstrates resilience to economic and political challenges.
Global Fashion Growth:
Projected 2-4% top-line growth in 2024, with regional variations.
The luxury segment is expected to dominate profits again.
Luxury Faces Challenges:
3-5% global growth is expected, down from 2023.
Potential contraction to 1-4% if economic conditions worsen.
Euro News Predictions:
8–10% global revenue growth for luxury goods until 2030.
The market is flourishing despite the slow post-pandemic rebound.
Personal Luxury Goods:
It was expected to reach $391 billion in 2023, the pre-pandemic level.
Consumers prioritize experiences over ownership, driving growth in luxury services.
Luxury's Future:
Poised for continued growth, economic headwinds require adaptation.
Innovation and experience-driven offerings are key to success.
5 Insights:
- Profit Powerhouse: 36% gain in 2023, surpassing all.
- Resilient Growth: Doubled profit since 2011, defying challenges.
- Leading the Pack: With 2-4% growth projected in 2024, luxury dominates profits.
- Facing Headwinds: 3-5% growth expected, potential for contraction.
- Experiences Over Ownership: 8-10% revenue growth predicted, driven by service demand.
