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LUXURY GOODS

Global luxury goods market poised for strong growth despite headwinds

By our News Team | 2022

Luxury sector is more than 20% up this year, and the good times will likely roll until the end of the decade, report says.

Despite highly uncertain economic and consumer market conditions, the global luxury goods market is in a post-pandemic renaissance and remains poised to see further expansion next year.

Indeed, the good times at the very top end of the consumer good market will likely continue to roll until 2030. This is according to the recently released 21st edition of the ‘Bain & Company – Altagamma Luxury Study’.

Luxury Goods

Photo by Odd Fellow on Unsplash

Bain is a prominent business consultancy operating in 39 countries, while the Altagamma Foundation is the Italian luxury brands committee composed of companies in the fields of design, fashion, food, jewellery, automobiles, and hospitality.

The personal luxury goods industry, in particular, saw a further growth acceleration this year, coming on the heels of the V-shaped rebound enjoyed in 2021, the research shows. 

Boosted by a strong market performance across quarters, and despite macro-economic indicators worsening globally and specific challenges in China, the personal luxury sector is set to see the value of its sales jump to US$366-billion in 2022, marking an advance of 22% at current exchange rates (or 15% at constant exchange rates) versus the previous year, the study projects.

Lifting of pandemic restrictions in China is important

The performance of the last quarter of this year, in determining the final outcome for 2022, will largely depend on the progressive lifting of Covid-19 pandemic restrictions in China, as well as the evolution of European and American luxury consumer confidence in the face of rising inflation and cost of living pressures, plus potential recession in the US and European economies, the report notes.

But despite present and continuing economic challenges, the luxury market continued to perform strongly throughout this year to date, with winners for brands across the board, and positive growth for some 95% of brands, the report concludes.

Yet luxury brand players are continuing to invest in future growth, even in the face of high inflation and rising costs, so that their profitability is slightly decreasing, versus the unprecedented increase enjoyed in 2021.

“The nouvelle vague – the new wave – of the luxury goods market will demand evolution amid disruption, adaptation amid uncertainty, and an expansion of creativity in all of the basics – all while new trends and concepts develop”, said Claudia D’Arpizio, a Bain & Company partner and leader of Bain’s Global Luxury Goods and Fashion practice.

You can read more about the ‘Bain & Company – Altagamma Luxury Study’ report here.

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Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

  • Other current and previous roles played by Dr Kin Kariisa:
  • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
  • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
  • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
  • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
  • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.