Luxury sales remain unaffected by rising interest rates, increasing by 22% in 2022

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%.

See flow at unusualwhales.com/flow.

Other News:

Resources:

CNBC

Forbes

tastytrade logo+
Get the best broker for options trading and earn Unusual Whales discounted! in cash with an eligible account deposit at tastytrade. Get an Unusual Whales bonus when you deposit $2000. Offer expires 3/31/25. Certain restrictions, terms and conditions apply.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.