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Global Luxury Market To Shrink 2% In 2024 Amid Economic Strain, Price Hikes

The global luxury goods market is facing a rare contraction, with sales of personal luxury items forecasted to drop by 2% in 2024, marking one of the sector’s weakest years on record. Consultancy Bain & Company’s latest report attributes the decline to economic pressures and steep price hikes, which have contributed to a shrinking customer base and softened demand.

According to Bain, the luxury market lost approximately 50 million consumers over the past two years, a sharp drop from its previous 400 million customer base. This decline has largely been driven by rising prices, especially as luxury brands repositioned their products within higher price brackets. Bain estimates a 20-22% slump in luxury sales in China, once a powerhouse market for high-end goods, now experiencing sluggish demand amid economic uncertainty.“This is the first time we’re seeing a drop in the personal luxury goods sector since the 2008-09 crisis, barring the pandemic,” said Bain partner Federica Levato. The report may raise concerns among investors that the sector’s downturn could endure longer than expected, impacting key players like LVMH and Kering.

The forecast reveals a shift in luxury consumer behaviour, particularly among younger shoppers, who have scaled back on purchases amid global economic headwinds, from geopolitical tensions to China’s economic challenges. Levato noted that while luxury spending on experiences like travel and dining remains strong, demand for physical luxury goods is expected to remain flat through the holiday season at constant exchange rates.

Strategies to Drive Future Growth

The report highlights that growth prospects for 2025 will depend significantly on brands’ strategic choices, particularly regarding pricing. Bain anticipates that global sales could rise modestly, between 0% and 4%, driven by European and American markets. China, however, is only expected to regain momentum in the latter half of 2025.

In another telling trend, the outlet channel—offering discounted luxury items—has outperformed the wider luxury market, reflecting a shift towards value-seeking among luxury buyers. Levato suggests that easing interest rates and potential tax cuts in the U.S. under Donald Trump’s leadership could lift consumer confidence and spending stateside.

The Shift to Experiential Luxury

While personal luxury goods are seeing a slowdown, Bain reports that luxury spending on experiences, such as upscale hospitality and dining, is on the rise, highlighting a potential shift in consumer preferences toward experience-driven purchases.

Forbes Middle East Unveils 100 Most Powerful Businesswomen Of 2025

Forbes Middle East has unveiled its much-anticipated 2025 ranking of the region’s top businesswomen, spotlighting influential leaders reshaping industries and driving meaningful transformation. The list was based on business size, individual accomplishments, leadership impact, and corporate social responsibility initiatives.

Top Spot For Hana Al Rostamani

For the third consecutive year, Hana Al Rostamani, Group CEO of First Abu Dhabi Bank (UAE’s largest bank by assets), claims the top position. In addition to retaining her position in the Forbes Middle East ranking, she was also featured on Forbes’ 2024 list of the World’s Most Powerful Women, securing the 60th position globally. Under her leadership, the bank achieved an impressive $3.5 billion in net profits and $334.8 billion in assets in the first nine months of 2024.

Rising Stars In The Top 10

Shaikha Khaled Al Bahar of NBK Group and Shaista Asif, cofounder and Group CEO of PureHealth Holding, take the second and third spots respectively, completing the top three.

The top 10 remains largely unchanged from last year, with Tayba Al Hashemi of ADNOC Offshore, Alisha Moopen of Aster DM Healthcare GCC, and Suzanne Al Anani of Dubai Aviation Engineering Projects (DAEP) making their debut in the top 10. In total, 27 new leaders have joined the list this year.

A Diverse And Powerful Group Of Women

This year’s list features 100 women from 32 sectors and 29 nationalities, underlining the diversity of talent driving the region’s progress. The banking and financial services sector leads with 25 entries, followed by healthcare and technology with nine each, and venture capital with five. Remarkably, 40% of the top 10 women are from the banking and financial services sector. Notably, Shaista Asif (PureHealth Holding) and Alisha Moopen (Aster DM Healthcare GCC) are the only non-Arab women in the top 10.

UAE Leads With 46 Leaders

The UAE continues to dominate, with 46 of the women on the list hailing from the country, solidifying its status as a global business hub. Egypt follows with 18 influential women, and Saudi Arabia claims nine entries. Egyptians lead in representation, followed by Emiratis and Lebanese women.

Empowering Women Through Initiatives

Several of the leaders have focused on upskilling and creating opportunities for women. Susana Rodriguez Puerta launched the ‘sAIdaty’ initiative in collaboration with the Dubai Business Women Council, aimed at providing 500 female council members in the UAE with AI skills. Similarly, Lamia Tazi of SOTHEMA collaborated with the Foundation for Research, Development, and Innovation in Science and Engineering to provide scholarships to PhD students from low-income backgrounds.

Click here for the full list.

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