Europe’s major luxury companies have seen their stock prices plunge early this year, raising concerns about overall growth prospects. With the combined market capital of Europe's six big firms at €251 billion, a sales‑growth trajectory now appears increasingly difficult.
Looking back, leading luxury brands have maintained high‑price strategies and premium services to expand consumer demand; however, with the downturn in China and U.S. markets and rising prices, new customer inflow has decreased. Consequently, European companies need to adjust their revenue structure and financial performance.
The economic paper highlights these phenomena and predicts a long‑term stagnation. While luxury market growth averaged 6 % over the past five years, this year is down to about 3–4 %. This indicates that European firms must devise strategic finance measures to respond to price volatility and global consumer trends.
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