A panel discussion in Abu Dhabi has revealed that the global luxury goods market has bounced back after witnessing a downturn brought on by the pandemic.
The discussion took place at the Investopia 2023 conference, which was held on March 2 and 3.
Luxury brands have strongly bounced back after the downturn, with its global market jumping 21 per cent, said Matteo Lunelli, chief executive of the Italian luxury brands committee Altagamma Foundation.
Mr Lunelli said the global luxury segment reached $1.4 trillion in sales last year.
The luxury industry is set for continued growth and creativity .. today a 1.4 trillion usd industry ! #Investopia2023 #patrickchalloub #ferraritrento #altagamma pic.twitter.com/gI3mKDFMAs
— Frederic Sicre (@fsicre) March 2, 2023
According to Statista, revenue in the luxury goods market will amount to $2.8 million this year in the UAE. The market is expected to grow annually by 3.13 per cent (CAGR 2023-2028). The market’s largest segment is luxury watches and jewellery with a market volume of $1.7 million in 2023.
The panel discussion also delved into the recent dynamics of the global luxury market, as well as its future aspirations.
The session titled ‘Global Luxury Brands: Key Trends and New Governance’ was attended by CEO of Chalhoub Group, Patrick Chalhoub.
Mr Chalhoub said he has witnessed the rapid growth of his business and its associated brands in the region and underscored how quickly the high-end fashion and cosmetics industry is advancing globally in the coming years.
Mr Lunelli said luxury is becoming much more inclusive, linked to the intrinsic quality of their creations, resulting in customers gravitating towards a brand for the value it encapsulates.
He drew attention to the sustainability issue, marking that Italian brands have always been eco-friendly, as they must contribute to protecting their community.
Mr Chalhoub highlighted the luxury industry’s commitment to sustainability. He said that significant steps are being taken to comply with the net-zero agenda by 2030, focusing on recycled products and a circular economy.
Mr Lunelli added that “digital is the future and luxury consumers are getting younger and more digital”.
Frederic Sicre, advisor to chief executive officers at Apco Worldwide, also announced that an Altagamma Club would be created in Dubai to “gather all managers of Altagamma and partners in the region to develop ‘made in Italy’ in the region”.
“This club will be a network supporting the growth of the region’s Italian lifestyle and high-end brands.”
The announcement comes ahead of Investopia’s event in Milan in May, which will be an opportunity to increase partnerships between the two regions.
Investopia is a global platform designed to drive global investments, generate growth and accelerate innovation, initiated by the UAE Government as part of the ‘Projects of the 50’.
Markets are currently shifting towards consumers of luxury products around the world, who are estimated to number 400 million people and projected to increase to 500 million people by 2030, added Mr Lunelli.
