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- Global luxury goods industry set for recovery in 2027 , US to remain bright spot : Goldman Sachs
- Global luxury goods industry set for recovery in 2027 , US to remain bright spot : Goldman Sachs
Goldman Sachs expects revenues of a basket of large, publicly traded luxury-goods makers to grow 7% in 2027 after several years of sluggish sales, with the US seen as a bright spot. The industry has faced headwinds including China's prolonged property slowdown, US tariffs in 2025, higher interest rates, upcoming US midterm elections and the Middle East conflict. The report says sharp price increases after Covid-19 played a larger role, with prices of traditional high-end brands rising an estimated 60% between mid-2019 and mid-2026, which reduced consumer interest and store traffic. Meanwhile, American appetite for luxury goods has picked up strongly, narrowing the gap between high US wealth and previously low luxury spending. The report also outlines seven factors, the 'seven Cs', that could determine brand growth, including scale, the spending power of wealthy consumers, creativity and ownership structure.
- Global luxury goods industry set for recovery in 2027, US to remain bright spot: Goldman Sachs
Goldman Sachs expects revenues of major listed luxury brands to rise 7 per cent in 2027, a recovery after several sluggish years, with the US likely to remain the bright spot. Headwinds include China's prolonged property slowdown, US tariffs in 2025, volatile equity markets, higher interest rates and geopolitical tensions. The report blames sharp post-Covid price rises, which lifted traditional high-end luxury prices by an estimated 60 per cent between mid-2019 and mid-2026, and limited innovation for weaker demand, though new CEOs and creative directors are now working to revive interest. US luxury demand has picked up strongly despite high wealth, after years of low spending possibly linked to guilt or outlet culture. Goldman also outlined seven long-term growth factors, including store locations, product categories such as jewellery, wealthy consumers' resilience, creativity, brand identity and ownership structures.
- Western luxury brands struggle to hold their ground in China
Leading global luxury brands are under pressure as Chinese shoppers increasingly buy secondhand luxury goods or domestic brands. According to Bain & Company, China's personal luxury market fell as much as 19% in 2024 and shrank another 3-5% last year, while the secondhand luxury market grew 15-20%. Louis Vuitton has closed 5 stores in mainland China over the past two years, and Galeries Lafayette had to halt its flagship Beijing store in May. Bank of America's Chen Luo says buyers are moving away from luxury as a status symbol toward personal identity, experience and emotional value, while digital and social media increasingly shape the market. LVMH's copyright win against Chinese drinks chain Molly Tea over a four-petal flower motif sparked backlash, as users and state media noted the monogram shares roots with traditional Chinese patterns, and LVMH admitted the controversy had a negative impact; analysts say China remains important even if it may not drive growth over the next 2-3 years.
- Europe's Luxury Sector Slumps on China Impact
The article reports that the four largest European luxury groups, LVMH, Hermes, Kering (owner of Gucci) and Richemont, have seen their combined market value fall nearly 50% since 2024. The top 10 companies in the STOXX Europe Luxury 10 index have lost about USD 350 billion in market value since the start of 2026, as hopes for a recovery faded and weak growth in China persisted. LVMH reported third-quarter 2026 revenue below expectations in fashion and leather goods, its shares have fallen more than 40% this year, and it has underperformed its rivals. The article also notes that Asia, once a major driver of global luxury spending with China at its core, has gradually lost ground amid a tougher economic backdrop.
- Japan department store sales climb 4 . 2 % in September
Japan's department store sales rose 4.2% year on year in September, marking a ninth consecutive month of growth, according to the Japan Department Stores Association, which reported on October 23, 2026. Total sales reached about 443.4 billion yen ($2.82 billion). Domestic sales rose 2.1%, while tax-free sales to overseas visitors jumped 25.3%, a seventh straight monthly gain, to 49.6 billion yen, or 11.2% of total revenue. The number of overseas shoppers rose 5.9% to 491,000, while purchases by Chinese visitors fell about 15% in headcount but rose about 7% in sales. Sales in the 10 major city areas grew 5.3%, far ahead of the 0.2% rise in the other seven regions.
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