THE ‘LIPSTICK EFFECT’ IS IN EFFECT

In The Daily Scoop by Accessories StaffLeave a Comment

LVMH just released its 2016 annual report and it reveals important trends that will impact luxury brands for the years ahead.  While LVMH posted a healthy 5.4% increase from 2015 to 2016, its rate of growth was less than one-third of that from 2014 to 2015 when revenues rose a remarkable 16.4%. This may signal the tipping point for a new, much more modest pace of growth that will be harder to come by in the future.  Bain and Company in its latest Luxury Goods Worldwide Market Study, conducted for Fondazione Altagamma, certainly believes so, as it reports: “This is the third consecutive year of modest growth [in the luxury industry] at constant exchange rates, and it represents a new normal in which luxury companies no longer benefit from a favorable market and free-spending consumers.” Read more at Unity Marketing

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