The Bain & Altagamma 2008 Worldwide Markets Monitor
This report highlights trends in three luxury market segments: High-End Furniture, Luxury Yachts, and Personal Luxury Goods. The high-end furniture market experienced solid growth in 2007 and 2008 but faced challenges in 2009 due to slowing consumer consumption and a stagnant real estate market​​. However, long-term potential remains strong, driven by brandization, ecological trends, and growth in emerging markets​​.
The Luxury Yacht Market
The luxury yacht market has shown resilience to economic cycles, doubling in size over the past eight years, with significant growth in 2008. Its future growth is expected to be driven by High Net Worth Individuals (HNWIs) and emerging markets, particularly the super-luxury segment​​.
The Personal Luxury Goods Market
Personal luxury goods had a good year in 2007, a safe 2008, but 2009 was expected to be challenging​​. This sector was impacted by exchange rates, price increases not resulting in higher average prices, and a decline in resilience for entry-to-luxury brands​​. Retail growth outpaced wholesale, indicating a shift towards new store openings and a risk-averse approach​​. Online shopping boomed, offering different consumer dynamics and lower psychological barriers to purchasing​​.
The Emerging Markets Region
Emerging markets provided a buffer for luxury players against global economic slowdowns, with Asia Pacific showing notable growth. The Americas entered a more challenging phase, while Japan experienced a luxury recession​​.
Other Specific Luxury Goods Categories
Specific categories like hard luxury, accessories, and shoes showed excellent performance. Menswear’s growth pace began to slow, while demand for more luxurious leather goods increased​​. Watches remained an evergreen category, but the impact of the 2009 financial crisis was a concern. Jewelry, after a strong performance in 2007, faced a slowdown in 2008, and fragrances were more dynamic in 2007, while cosmetics were less impacted by a weak 2008 holiday season​​.