Luxury to slow down in 2019: “Fair enough, we can’t keep pace with that”, claims HSBC. Risky times for Ferragamo and Tod’s

In 2019 luxury is bound to expand, though its growing trend will be lower compared to 2018: in fact, following a 9% increase, achieved last year, the business turnover is expected to grow by 6% this year. Such is the forecast issued by HSBC international bank in their “Expecting the Unexpected” report. According to the institute, a 9% increase cannot be supported: “We expect the business trend to augment by 6%, which is the average rate of growth that can be supported in the long-term in the luxury industry”, claims the financial institute. In 2018, the business speed-up mostly depended on Chinese buyers. Their consumptions are rather unlikely, according to the bank, to keep that high: more than likely, in China sales will slow down owing to the commercial war tensions, in addition to other macroeconomic matters. Europe and Japan are going to slow down as well. In such scenario, in which earnings coming from the high-end business are going to decrease overall, only the major groups, points out HSBC, will be able to deal with the new situation and cope with it successfully: LVMH and Kering, most of all. In addition to them, other promising brands, such as Capri Holdings and Tapestry, along with Hugo Boss, Hermès, Richemont and Moncler, will manage to play properly as well. Conversely, Salvatore Ferragamo and Tod’s are bound to lose some ground. In their report, HSBC have pinpointed a few trends for 2019, some of which related to the boost of new generations: millennials and Z generation will increase and enhance their shopping attitude. Yet, to tackle more effectively such demand, luxury brands are urged to improve their online sale channels, where they must make up for delay to competitors.


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