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Global Luxury Goods Market Contracts for First Time in 15 Years as Consumers Pivot to Experiences

Europe's top luxury conglomerates have shed €251 billion in market value this year following a sharp contraction in Asian retail spending. The sell-off accelerated after LVMH reported a 5% organic sales decline in its core fashion division.

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Illustration: European luxury conglomerates are facing a severe market correction as Chinese consumer demand cools.From: Luxury Goods Sector Loses €250 Billion as Chinese Demand Weakens

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Key numbers

€1.44 trillion
Total global luxury spending in 2025
€358 billion
Personal luxury goods market (stabilizing)
7.2–10.4%
Projected CAGR for experiential luxury
80%
Recent sector growth driven by price hikes

From: Global Luxury Goods Market Contracts for First Time in 15 Years as Consumers Pivot to Experiences

Charts, maps and images

LVMH and Hermès accounted for the vast majority of the €251 billion in market value lost by Europe's top six luxury groups.From: Luxury Goods Sector Loses €250 Billion as Chinese Demand Weakens ·
Solid growth in the United States, Japan, and Europe failed to offset a 5% contraction in the broader Asian market.From: Luxury Goods Sector Loses €250 Billion as Chinese Demand Weakens ·
While traditional luxury goods face a structural reset, the experiential sector is projected for sustained, rapid growth.From: Global Luxury Goods Market Contracts for First Time in 15 Years as Consumers Pivot to Experiences ·
Global luxury growth is migrating from its traditional anchors toward emerging cultural and hospitality hubs.From: Global Luxury Goods Market Contracts for First Time in 15 Years as Consumers Pivot to Experiences ·
Illustration: As primary retail sales slow, China's secondary market for pre-owned luxury goods is experiencing rapid expansion.From: Luxury Goods Sector Loses €250 Billion as Chinese Demand Weakens ·
Illustration: Luxury executives are rethinking pricing architectures and accelerating store closures in response to the prolonged downturn.From: Luxury Goods Sector Loses €250 Billion as Chinese Demand Weakens ·
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Luxury conglomerates are aggressively expanding into hospitality and wellness to capture the experiential spend.From: Global Luxury Goods Market Contracts for First Time in 15 Years as Consumers Pivot to Experiences ·

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