Dive Brief:
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Unlike spending by lower-income and middle-income consumers, luxury spending worldwide will rise 5% this year, according to a report released Tuesday by management consulting firm Bain and Co.
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Much of that is happening here in the United States, which is increasingly the preferred destination for wealthy tourists from abroad, especially China, according to the report.
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The boost, which Bain says will be maintained through 2017, is a bit less than last year’s 7% rise, probably due to political unrest in Russia, economic troubles in Europe, and moves by China against corruption and over-consumption.
Dive Insight:
U.S. consumer confidence has been buffeted this past year despite consistently good economic news, but luxury retailers are feeling that much less than those catering to lower and middle-income shoppers. In its report, Bain says that spending in the luxury sector will continue to be healthy, despite real challenges abroad. U.S. luxury retailers in particular will benefit greatly, in large part thanks to big-spending wealthy tourists from China.