Demand for luxury goods remains robust, as growth defies the uncertainties that undermine other markets. But the counterfeiters are becoming more sophisticated.
Luxury goods are more accessible than ever. With 400 million consumers and counting, its success contradicts its inherent exclusivity. At $350 billion, personal luxury goods are a large part of a wider trillion dollar market. But while the names that dominate luxury include some of the oldest, most storied brands in the world, they are far from backward looking. Luxury is embracing new categories, to extend its reach and appeal into new areas.
Countering fakes without harming brand appeal and design can be tricky, but when 10% of cosmetics are estimated to be counterfeits, failure to is not an option.
Luxury is also making inroads into new digital worlds, but its historical heartlands still drive its revenues. The luxury cosmetics market is worth in excess of $45 billion and is set to top $75 billion in 2025. But the future value and relevance of luxury brands will be seen in convergence with adjacent categories, such as athleisure, as well as new geographies, as has long been the case. This presents new value and vulnerabilities for luxury.