Bain & Company’s 2015 report indicated that the luxury market was growing. Personal luxury goods purchases tripled in the past 20 years to more than $270 billion. However, most reports this year are indicating sales are flat.
The threats of global stability (both financial and security) with Britain leaving the EU, terrorism, the slowdown of China (to name a few) — these factors are tightening the spending habits of consumers of high-end expensive goods. Add the industry issues of the look-a-likes, counterfeits and on-line shopping, luxury good retailers like retail in all forms are being challenged.
The golden rule states that you can’t rest on your past successes because competitors (now called disruptors) are right around the corner.