Jewelry is one of three categories in the luxury sector expected to see solid growth in 2019, as domestic consumption in China and the US increases, according to Bain & Company.
Leather goods and handbags will also see sustained growth throughout the year, while watches will begin to show recovery in specific regions, including Europe. However, Hong Kong, the largest consumer market for luxury timepieces, will remain slow.
Overall, the personal luxury-goods market will grow between 4% and 6% to EUR 271 billion ($303.48 billion) to EUR 276 billion ($309.08 billion), Bain estimated in its global luxury-goods report, published last week. Mainland China will be the main driver of growth in the luxury market, with sales expected to rise 18% to 20%. Chinese consumers will comprise more than 45% of the market, and half of their luxury spending will take place locally, Bain noted.
“China continues to dominate the luxury scene,” said Claudia D’Arpizio, a partner at Bain. “Elsewhere we are continuing to see geopolitical uncertainty shape and reshape tourism spending patterns, with Chinese consumers choosing to spend domestically with more frequency.”
The increase in domestic spending by Chinese consumers will affect Hong Kong and Macau, which usually see increased sales in the luxury sector from Chinese tourists. Even so, sales in the rest of Asia will rise 10% to 12%, Bain predicts.