Representing a resilient segment of the economy, the luxury goods market achieves remarkable performance, even in the aftermath of economic downturns. As its most prominent sub-segment, the personal luxury goods stands out and presents significant development opportunities both internationally and domestically.
The survey “The future of Consumer goods: The market of luxury goods” conducted by KPMG in Greece, aims to shed light on the global and the Greek personal luxury goods market. It provides a comprehensive overview of the global market, including information on its size, growth trends, and significant players. Moreover, it showcases an analysis of the financial standing of luxury brands in Greece. The survey highlights the specificities of the Greek luxury market, which is on an upward trajectory, fueled by the increasing tourism and a deep-seated fondness for luxury goods among Greek shoppers. Looking into the future, the study captures the liquid preferences of luxury shoppers, the increasing importance of sustainable luxury, and the significant impact of new technologies, such as NFTs, generative and multimodal AI.
The key points of the survey are:
- The outlook of the global personal luxury goods market remains optimistic, despite economic challenges. Broken down by region, Asia holds the largest share of personal luxury goods at 38%, followed by the Americas with a 32% share, Europe with 27%, and the rest of the world with 3%.
- The Greek luxury goods market continued its growth in 2022, boosted by the elevated tourism volume and new retail openings. Athens and Mykonos are key shopping destinations, with a range of different distribution models adopted by the brands.
- Gen Z's push for sustainability is redefining luxury, while brands target younger generations at the channel where they are most engaged – on social media.
- Luxury brands globally are engaging in sustainable practices, focusing on ethical sourcing, responsible supply chains, energy efficiency, circularity, and fair labour.
- The luxury goods pre-owned market is gaining traction, with leading brands investing directly in this market or through partnerships with existing resale platforms.
- Technological advancements are challenging luxury brands to integrate digital innovations while maintaining their heritage. They are adopting digital strategies, including NFTs, generative AI and multimodal AI, to enhance customer engagement and appeal to the tech-savvy youth.
The most important global personal luxury goods figures include:
- €234.4B net sales of global personal luxury goods companies in 2022, with a CAGR of 2.3% between 2018 and 2022
- 3.2% CAGR projection of global sales between 2023 and 2028
- ~80% of the luxury goods sales are generated by the top 10 global personal luxury goods companies
The most important Greek personal luxury goods figures include:
- €509.8M net sales of personal luxury goods companies in 2022
- 13.2% CAGR of luxury goods sales between 2018 and 2022
- 36.1% Year-on-year growth of luxury goods sales between 2021 and 2022
Conclusions
The luxury goods market is navigating a period of great expansion, despite the global challenges that have emerged. The Greek market for personal luxury goods is booming in alignment with global trends. The integration of advanced technologies along the value chain, from back-office to customer-facing operations, is set to bring considerable advantages to all stakeholders. The adoption of technology will push for further growth, enhancing the interaction between luxury brands and their selective clientele.
