Luxury Labels Suffer as Passion For Crafts Thrives
Listed under: News
Published: Wednesday, November 18, 2009
Sales of expensive brands have fallen by as much as eight percent this year, as a growing number of consumers have shunned designer jewellery, bags and clothing, in favour of handmade garments and accessories they have created themselves from scratch, according to a recent report from global and business and strategy firm, Bain and Co.
The research – which reveals global sales of luxury goods fell from €167 billion in 2008 to €153 billion in 2009 – predicts that the trend is unlikely to continue, suggesting trade will increase one percent over the next year and experience a full recovery by 2010. The forecast is a slight improvement on the company's last prediction, which suggested sales could decline by as much as 11% next year.
The report suggests that the rise of make-do-and-mend culture has exacerbated the fall in sales, seeing consumers reject expensive, store-bought garments in favour of bags, jewellery and clothing they have made themselves. Jewellery sales have been hit particularly hard, dropping 12% over the past year alone.
Commenting on the findings, Claudia D'Arpizio, partner and luxury goods expert at Bain and Co, says, "Frugality is fashionable, even for the wealthiest of consumers.”
Globally, luxury sales in America have shown the greatest fall, dropping 16% over the past year alone. Europe and Japan have also been affected, seeing business decrease eight percent and ten percent respectively. However, Asia appears to have bucked the trend, with experts predicting it could grow by as much as 12% this year.
The research – which reveals global sales of luxury goods fell from €167 billion in 2008 to €153 billion in 2009 – predicts that the trend is unlikely to continue, suggesting trade will increase one percent over the next year and experience a full recovery by 2010. The forecast is a slight improvement on the company's last prediction, which suggested sales could decline by as much as 11% next year.
The report suggests that the rise of make-do-and-mend culture has exacerbated the fall in sales, seeing consumers reject expensive, store-bought garments in favour of bags, jewellery and clothing they have made themselves. Jewellery sales have been hit particularly hard, dropping 12% over the past year alone.
Commenting on the findings, Claudia D'Arpizio, partner and luxury goods expert at Bain and Co, says, "Frugality is fashionable, even for the wealthiest of consumers.”
Globally, luxury sales in America have shown the greatest fall, dropping 16% over the past year alone. Europe and Japan have also been affected, seeing business decrease eight percent and ten percent respectively. However, Asia appears to have bucked the trend, with experts predicting it could grow by as much as 12% this year.
