After consecutive 3-year strong growth, the global personal luxury market is observing the new norm, and is expected to reach the market size of EUR 271 billion in 2019 with a growth rate of 4-6%. Chinese consumers are leading the growth in the global market. In 2019, total retail sales in China Mainland was increased by 26%, reaching EUR 30 billion, accounting for 35% of the global consumption of personal luxury products.
Impacted by digitalization, the customer flow in offline stores are declining, yet the online penetration rates are still low
Fierce competition increases customers expectations towards exclusive experiences and personalized services, making it difficult to improve brand loyalty
It’s hard for luxury brands to reach lower tier cities, their channels and potential customers