While most luxury fashion brands took a hit in Q2, Hermes_Paris saw surprising growth in the U.S. market.
The downturn is an about-face from what occurred at the height of the pandemic. In 2022, Americans contributed to 33 percent of global luxury sales, up from 22 percent in 2019, according to Bain & Company data cited by the. The U.S. luxury market in particular almost doubled in three years, adding up to $128 billion in 2022.
Now, though, consumers are changing their shopping habits, and people who had saved up money during the pandemic—which they then spent on luxury goods—may not have as many dollars in the bank, or they may be holding out due to the vicissitudes of the economy. Brands have been experiencing lessening demand for entry-level luxury products such as sneakers,That may be true for shoppers at the lower end of the luxury scale.
Plus, shoppers across the wealth spectrum continue to spend about one-tenth more on luxury goods than they did in 2019, according to credit-card spending data. So while some brands may have experienced a rocky start to the year, the luxury market isn’t in total free fall—especially where Birkin bags are involved.
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