Prete joined Bain in 2013, after a 3-year experience in investment banking. At Bain, he has led more than 50 assignments in the fashion and luxury industry on issues relating to corporate strategy, portfolio management, retail and wholesale excellence, distribution strategy, organisation and operating model redesign. He is a member of the Bain team in charge of the annual publication of the Bain Global Luxury study, one of the most cited sources of market information in the luxury industry.
Can you share a couple of the key insights that you would like to share at the event?
We will share our perspective on the global personal luxury goods market, looking at both the key changes and trends that happened in 2021, and also imagining what we should expect from the years to come in terms of key growth-drivers and challenges for all luxury players in the market.
What do you see as some of the most important opportunities for the luxury sector or your brand?
The personal luxury goods market experienced a V-shaped recovery in 2021 after its worst dip in history. We see the 2021 rebound as a good predictor of a healthy growth of the market in the coming years, thanks to positive and solid fundamentals. As we move ahead, we anticipate that four growth trends will profoundly reshape the luxury market by 2025. First, Chinese consumers are set to become the dominant nationality for luxury. Second, mainland China is on a path to overtake the Americas and Europe to become the biggest luxury market globally. Third, online is set to become the leading channel for luxury purchases. Fourth, younger cohorts (Gen Y to Gen Z) should become more demographically dominant in luxury.
What are some of the greatest challenges for the luxury sector?
The pandemic marks a turning point for luxury as we knew it. The expanding universe of luxury customers expects more from brands than before. Well beyond product considerations, they seek personalization and alignment with their values, a strong voice on social issues, and real action and responsibility when it comes to sustainability. Luxury brands will continue to redefine themselves over the next 20 years by expanding their historical mission beyond creativity and excellence, generating economic growth in a networked economy, contributing to cultural development, and fostering social progress.
