Luxury brands in the United States that cater to wealthier consumers outperform those that cater to lower-income shoppers who are put off by economic uncertainty, according to consulting firm Bain & Company.
Reuters reported that Bain boosted its annual sales forecasts for the worldwide market for personal luxury goods, including apparel, accessories, and beauty items. It anticipates growth of between 5% and 12% this year, up from earlier projections of between 3% and 8%.
Many high-end labels are altering their marketing methods or pushing upwards to cater to their wealthiest consumers, who are considered more impervious to economic headwinds, as growing prices put younger shoppers under more strain than older generations with higher incomes.
Ariel Ben Solomon is the Growth and Strategy manager at Ecomhunt. He is the host of the Ecomhunt Podcast. Can be followed on Twitter at @ArielBenSolomon
