According to Bain & Company’s most recent Luxury Goods Worldwide Market Monitor report, the global luxury industry has exceeded $1 trillion in retail sales for 2015. The categories that saw positive revenue growth are jewellery and watches.
The report also shows that revenue from the luxury markets around the world has a 5 per cent year-over-year increase.
Consumers are spending as much as $253 billion in the jewellery and watch categories, which has increased 13 per cent overall but only 1 to 2 per cent at constant exchange rates.
According to the report, the reason for the growth in the luxury market stems from the strength of the U.S. dollar, the Chinese stock crisis, and the oil’s price drop.
The strength of the U.S. dollar has forced tourists and American citizens to shop in Europe instead. Consumer confidence in the U.S. has dropped as a result of the Chinese stock crisis. And finally, the luxury consumers of the most exposed economies in the world experienced a wealth reduction as a result of the oil price drop.
In Canada, there has been an improvement in luxury sales as a result of decreased competition from the U.S. because of the strong dollar.