Luxury Goods Landscape Report

As the industry experiences a downcycle, strong branding amplifies pricing power and supports fuel for long-term growth.

The luxury industry is a competitive niche in the consumer cyclical space, as those under analyst coverage benefit from an intangible asset moat source. Our Morningstar Luxury Brand Power Framework helps assess whether these firms in the global luxury goods market are positioned well to retain appeal and future pricing power.

Despite this current downcycle, the luxury industry growth cycle has historically recovered quickly and strongly. In the long-term, we expect luxury demand, primarily concentrated in the Chinese market, to be driven by growth in wealth and GDP per capita. For the American and European markets, consumption demand is pessimistic amid stabilizing and low growth from receding pandemic-era spending trends.

Get the report to discover more on future expectations in the global luxury good industry.