The luxury fashion market is still thriving, despite threats of inflation and recession.
In fact, as noted by Business-Standard.com, “While much of the world is fretting over higher fuel and energy prices, the study by Bain & Company consultancy indicated that the global luxury market remains set for growth, largely due to the continued resiliency of the world’s wealthiest people.”
Even better, the market grew by nearly a third to $198 billion in 2021. For 2022, Bain & Company believes sales could grow 5%, worst case scenario, to $311.26 billion by 2023. Best case scenario, the industry could grow to $336.78 billion by 2023.
All could be beneficial for companies such as Gaucho Group Holdings Inc. (NASDAQ: VINO), LVMH Moet Hennessy Louis Vuitton (OTC: LVMUY), Kering SA (OTC: PPRUY), Nordstrom Inc. (NYSE: JWN), and Burberry Group (OTC: BURBY).
Even better, according to Business of Fashion, “Luxury tends to fare better than other sectors during a downturn because of its exposure to high-income consumers. Wealthy shoppers do pay attention to their net worth, and are less likely to spend when the market is down, but the impact is often less dramatic than for other groups.”