Luxury
Background & Challenges
The luxury goods market, estimated to be worth $380 billion by 2026, is one of the most dynamic sectors, with double-digit growth expected to rival that of the technology sector. This market is characterized by the dominant presence of major international groups such as LVMH, as well as independent players like Rolex. The main value of these companies lies in their brands, with valuations reaching up to 50 billion euros for brands such as Hermès.
Several factors are contributing to this extraordinary growth and will accelerate it:
- The contribution of China, which accounts for nearly 40% of global sales
- The rise of new countries like India, with 2-digit growth in local markets
- The emergence of new consumers aged under 40, who account for 40% of local consumers.
- Push and pull digital solutions for customer journeys all over the world, from Delhi to Oslo
- The development of new consumer habits around GenZ: second hand, circular economy, sustainability...
The investments made by institutional brands in terms of distribution, points of sale and product quality to meet consumer demands go beyond all scenarios.
However, it seems to us that the three main issues in this euphoric period for all brands are :
- maintain Brand Equity standards while capturing growth
- counterbalance overdependence on the Chinese market
- integrate the new frontiers of customer experience brought about by AI
This search for balance means finding the right trade-offs between diversification, strategy, growth and demand management. All players are faced with this trade-off.
Contact us :
Postal address: 38 rue de Berri 75008, Paris 8, FRANCE
Physical address: 93 Bd Haussmann 75008, Paris 8, FRANCE
contact@maex-invent.com
Realization & referencing
