Per CNBC

While many struggled due to the increased interest rates, luxury sales somehow remained unaffected. In 2022, despite the rising interest rates, personal luxury goods global sales increased to $381 billion.

The increase in global sales to $381 billion represents a 22% growth for personal luxury goods sales in 2022 alone. This comes as Bernard Arnault, the founder, chairman, and executive of LVMH, took the title of the richest man in the world.

Per Forbes, Bernard Arnault & family is worth a whopping $214.2 billion as of press time. Elon Musk, the once richest man in the world who overtook Jeff Bezos, sits in second place with a net worth of $191.4 billion.

In the report by CNBC, it was noted that millennials, formally known as Gen Y, and Gen Z, accounted for the massive growth in the luxury market in 2022. The article highlighted a report from Bain & Co., which shared how this would affect the market in 2030.

“By 2030, younger generations (Generations Y, Z, and Alpha) will become the biggest buyers of luxury by far, representing 80% of global purchases,”

In 2023, luxury sales are estimated to grow from 3% to 8%, depending on how global economies perform. This came as the US surpassed China in luxury goods sales as the Chinese market shrank by 1%, which was highly attributed to the lockdowns.

Jan Rogers Kniffen, J Rogers Kniffen WWE consulting firm CEO, gave a statement luxury purchases are starting to become younger and younger.

Kniffen: “The generation before the Z’s pushed the age of first luxury purchase to 18 to 20. Wasn’t 15 to 17 the next logical stop? Is that the bottom? Probably not.”

The news comes as American car payments are experiencing the highest rate of delays since 2009, after the Great Recession. A report revealed that the number of subprime auto borrowers reached 5.67%.

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CNBC

Forbes