look news india
Donald Trump News: Global sales of personal luxury products are likely to decline next year for the first time since the Great Recession, according to a recent Bain Consultancy study. If the tariffs proposed by former US President Donald Trump go into effect, the decline is likely to worsen and European luxury brands will see their market position challenged due to increased prices. The study further notes that Italy’s Altagamma Luxury Association has expressed concern over the matter and suggested that tariffs could make European luxury products too expensive for American consumers.
The US, the second largest market after Europe, plays a significant role in global luxury product sales.
The study did not estimate the exact impact of the tariffs but suggested that an exception might apply due to limited American luxury options. However, if tariffs are imposed, European luxury manufacturers may shift their production elsewhere other than the US or consider capitalizing on tourist spending in Europe to offset the impact.
Global instability and inflation have been blamed for a two percent decline in luxury goods sales next year, which will fall to $36.3 billion from $369 billion in the current year. Despite the recent post-Covid growth, social unrest, war and the unstable political landscape have negatively impacted consumer confidence. Moreover, high prices and lack of innovation of luxury brands have reduced the shopping sentiment even among affluent consumers.
The challenge in the luxury product sector has also increased due to the discouragement of the new generation of consumers seeking creativity and innovation. This shift, driven by economic congestion or discouragement, has reduced the luxury market base to approximately five million consumers, indicating a difficult future for luxury brands.
