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Published
Dec 21, 2015
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Global personal luxury market grows by 3% in 2014

Published
Dec 21, 2015

The global market for personal luxury goods continues to grow, reaching €224 billion in 2014, found the annual research report by Ernst and Young, called 'The Luxury and Cosmetics Financial Factbook 2015'. According to EY, the market, which grew by 3% in the period, has now entered a period of maturity with demand still growing sustained mainly by touristic consumption.


Ernest & Young


The growth was helped by the sharp depreciation of the euro, which left the sector with an unbalanced price structure across regions. However China continues to be the top consumer country, representing a third of the total market, while Korea and Japan are hot new destinations. Online sales make now 5% of total luxury sales.

Meanwhile, the global cosmetics market grew by 3.6% in line with the previous year, reaching €181 billion in 2014. Asia-Pacific and Latam represented almost half of the global cosmetics market, which remains a supply-driven market fuelled by innovation where consumers are always looking for quality and perceived results. Its growth will be led by quality, budget-friendly products and by natural and men’s products, said the consulting firm.

Companies in the global personal luxury market face three main challenges in the year ahead: currency fluctuations, the need to develop flawless omni-channel networks and the redefinition of retail landscapes, as consumers become more informed thanks to online/offline channels.
 

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