Skywire

  It might be best said quietly, but after a tough few years for the high-end sector, tentative signs are arguably emerging that the coming year could be a positive one for growth.  This much was put forward by a recent City AM report, which cited analysts as predicting sector-wide revenue growth of five to six per cent during 2025.  Such relative optimism appears to be based on the judgement that opportunities in the United States and China are “not getting any worse”.  In the words of analysts at RBC, Piral Dadhania and Richard Chamberlain, “while luxury has generally been a tough sector” since the second half of 2023, “the setup is improving”.  However, many luxury brand decision-makers seem wary of the dangers of adopting an overly upbeat stance.  When McKinsey surveyed fashion leaders, only a fifth (20%) of them said they anticipated customer sentiment would be on the rise in 2025. Indeed, about four in 10 (39%) respondents signalled an exp...

  With the release of another report on the present state and prospects for the luxury sector, has come renewed concern that the most prestigious brands haven’t done enough lately to appeal to Generation Z audiences. Indeed, it has been suggested that luxury players largely forgot about such younger consumers in the years immediately following the COVID-19 crisis.  The publication in question, issued by Bain & Company, found that luxury expenditure worldwide was expected to stay relatively flat compared to 2023. While global luxury spending looks set to reach almost €1.5 trillion this year, this would only equate to an estimated growth rate of between -1% and 1% on a year-over-year basis.  Luxury brands have lost 50 million customers in just two years  The latest projections set out by the American management consulting firm – in partnership with Altagamma, the industry association for Italian luxury goods manufacturers – indicate that the personal luxury...