Financial crisis does not hit luxury, despite a slight slowdown: in 2021 it will account for over 450 billion euros, claims EY. Premium to be the winning card

Someone in a pessimistic mood would first emphasize that the expansion trend has been (slightly) slowing down. Conversely, from an optimistic standpoint one would argue that a positive outcome is being confirmed anyway. Notably, from 2010 to 2013 luxury CAGR average rate was remarkable, +7,3%. Over the last three years it went down to 3,1%, and it is bound to reach a sound trend, +3%, till 2021: its global turnover will therefore account for 311 billion euros. Such is the financial forecast provided by “The Luxury and Cosmetics Financial Facts 2018” report, carried out by Ernst & Young consulting company. In 2021 the overall turnover of all high end luxury products (including beauty) is expected to amount to 517 billion euros (in 2016 total incomes were 318 billion euros, in 2017 they went up to 435 billion euros): as for the hard luxury segment, sales will be driven by accessories (footwear most of all, +10%); as for the premium business, bags and apparel will open the way to a boost. As reported by MFF, EY assume that such segment is going to be the winning card: although in 2021 the business volume (145 billion euros) is due to be lower, compared to luxury, its CAGR rate will be much more rewarding: after swinging around +5%, on average, in the last three year period, the segment business trend will increase to +7,6% until 2021.


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