The trillion-dollar global luxury market is losing some of its luster, as weakness in China, Russia and other emerging markets is weighing on sales of everything from Swiss watches and Gucci handbags to yachts and private jets.
Luxury sales worldwide are expected to grow 5 percent at constant exchange rates in 2015, to just over 1 trillion euros, according a report released Thursday by Bain & Co.
Sales of personal luxury goods, which include leather goods, jewelry, watches and fashion, are expected to grow only 1 percent at constant exchange, to 253 billion euros. That compares with growth of 3 percent last year and 7 percent in 2013.
"For the last several years, we've referenced 'luxury's new normal' with a deceleration of the personal luxury goods market," said Claudia D'Arpizio, a Milan-based Bain partner and lead author of the study.
"Now, we are starting to feel the impact of that slowdown," she said. "The challenge for luxury brands in this environment is how to successfully navigate through hard-to-predict volatility."