Luxury market seen as growing in 2022 despite inflation, war

Category: Business


Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. take a bite out of (something) / teɪk ə baɪt aʊt əv / (idiom) – to reduce something by removing a huge amount of it

    The huge hospital bills have taken a bite out of the couple’s retirement fund.

  2. commission / kəˈmɪʃ ən / (v.) – to formally agree with someone to do a piece of work

    The actress commissioned the painter for a portrait.

  3. apparel / əˈpær əl / (n.) – clothing

    He’s dressed in elegant apparel.

  4. high-end / ˈhaɪˈɛnd / (adj.) – referring to products or services that have high quality and are really expensive

    This store sells the latest high-end gadgets.

  5. hard stop / hɑrd stɒp / (n.) – a particular time when something, such as an activity or task, must be stopped

    The construction of the new building hit a hard stop due to typhoons.


Read the text below.

Neither inflation nor the war in Ukraine is threatening to take a bite out of the luxury fashion market, according to a study published June 21.

While much of the world is fretting over higher fuel and energy prices, the study by Bain & Company consultancy indicated that the global luxury market remains set for growth, largely due to the continued resiliency of the world’s wealthiest people.

The global luxury market grew by nearly one-third to 288 billion euros ($198 billion) last year, rebounding from its worst recorded dip due to the 2020 pandemic lockdowns, according to the study commissioned by Italy’s Altagamma association of high-end producers.

Sales of personal luxury goods including apparel, accessories and footwear posted high double-digit growth in the first quarter of this year, despite the first signs of economic uncertainty tied to the Russian invasion of Ukraine, Bain said.

In its most pessimistic outlook, assuming global inflationary pressure, Bain forecasts growth in the sales of high-end personal goods this year to grow by 5% to around 305 billion euros. But the consultancy also sees a case for up to 15% growth if the current trends continue, pushing the market to 330 billion euros next year.

The United States and Europe have boosted growth so far this year, while sales are expected to hit a hard stop in China due to COVID-19 restrictions in key cities.

This article was provided by The Associated Press.

Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Bain & Company’s study showed that the global luxury market remains set for growth despite the war and worldwide inflation. How do you feel about this news? Discuss.
  • Why do you think the wealthy continue to buy luxury items despite the economic situation (ex. as an investment, as a show of status)? Discuss.

Discussion B

  • What are some of the biggest luxury brands in your country? What do you think makes these brands luxury items (ex. materials used, limited items produced)? Discuss.
  • If you were to purchase some luxury items, what would you buy? Why? Discuss.