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8 themes that will define future :

1. Hic et nunc (here and now): Looking ahead, we expect market fundamentals to remain favorable for the personal luxury goods segment, resulting in a continued growth trajectory of 3% to 5% per year through 2025, for a total market value of €335 billion to €375 billion. However, sociopolitical issues, commercial policies and potential soft recessions could make for a bumpy road in the short term.

2. Chinese (increasingly): By 2025, Chinese consumers will account for 46% of the global market (up from 35% in 2019). Chinese customers already delivered 90% of the growth in 2019, and increasingly shopped “at home.”

3. Young(er): Gen Y and Gen Z will dominate the luxury market, with disruptive consumer trends arising from these younger generations.

4. Phy-gital: A growing wave of digitalization continues to disrupt physical distribution networks. The online channel is still booming, while we anticipate that the global network of physical stores could peak in 2020.

5. Diverse (in spending power and purchasing drivers): By 2025, the global luxury customer base will grow from two sources:

  • An increasing number of ultrahigh-net-worth individuals, primarily based in the Americas and Asia, who look for “what money cannot buy”;

  • A new base of emerging luxury customers, primarily stemming from the growing Asian middle-class, who look for “entry-to-luxury” products that are not just “mini” versions of core luxury products, but innovative products flourishing with stylistic content in their own right.

6. Open: Customers will be highly receptive to new value propositions and business models that challenge the rules of the game, as already testified by the phenomenal success of “indie brands” in beauty, or the growth of the secondhand market, for instance.

7. Responsible: Social commitment will be a critical customer priority. Corporate and social responsibility will evolve from being a “must-have” to being a lever to truly transform the business.

8. Emotional: Beyond products, experiences and ideas, feelings and emotions will become an important ingredient to deliver value to postaspirational customers: How do luxury brands truly make their customers feel?


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