Tariff threats, wars will slow global luxury sales in 2025: Study

Milan (AP) – Global sales of luxury goods were issued “slowing but not collapsing,” according to a consulting study by Bain & Co. Thursday.

The study said that sales of luxury goods that have eroded to 364 billion euros (419 billion dollars) in 2024 are expected to slip by 2 % to 5 % this year, noting the threats of American tariffs and geopolitical tensions that lead to economic slowdown.

“However, to be positive in a difficult moment-with a slowdown of three wars, economy slows, inequality at all-it is not a market for collapse. It does not collapse,” it does not collapse. “

In addition to the external opposite winds, luxury brands removed consumers with a continuous creative crisis and an increase in sharp prices. Buyers have also been suspended by recent investigations in Italy, which revealed that the conditions of SweatShop in the sub -contractors make luxury handbags.

The study showed that sales slide sharply in the power markets in the United States and China. In the United States, the fluctuation of the market due to the definitions caused consumer confidence. China recorded six quarters of shrinkage to consumer confidence.

The Middle East, Latin America and Southeast Asia are registered. The study showed that Europe is mostly flat.

This has created a sharp difference between brands that continue to have strong creative growth and profits, such as the Prada Group, which recorded a 13 % jump in the first quarter to 1.34 billion euros, and trademarks like Gucci, as revenues decreased by 24 % to 1.6 billion euros in the same period.

KERING, the owner of Gucci last week, rented the Italian CEO de Meo, former CEO of Renault, to install a shift. The decision comes as three of its brands are launched – Gucci, Balenciaga and Bottega Veneta – two new creators.

KERING’s (PPRUF, PPRUY) shares increased by 12 % on the appointment news. D’Apizio emphasized his busy record, as French car maker Renault returned to profitability and previous roles as a marketing director at Volkswagen Matn.

She said: “All of these factors are well echoed in a market like luxury when you are at a stage where growth is still the name of the game, but you also need to make the company more intelligent in terms of costs and transport some brands.”

Trademarks also make changes to reduce the effect of potential US tariffs. These charging include directly from production sites, not warehouses, and reduce stocks in stores.

“With aesthetic changes in full swing,” the filling of channels is meaningless. “