Luxury industry lost 50 mln consumers in past two years
Price hikes have played a role, outlets outperforming sector
Brands39; pricing strategies to influence growth prospects

MILAN, Nov 13 Reuters Sales of personal luxury goods are set to fall 2 this year, making it one of the weakest on record, with price hikes and economic uncertainty shrinking the industry39;s customer base, according to consultancy Bain Company.

In its closelywatched report on the 363billioneuro 386 billion market, Bain estimated a 2022 sales drop in China, which has turned into a drag after a yearslong boom before the pandemic fuelled by the wealthy and growing middleclass.

The forecasts include the effect of currency moves.

This is the first time the personal luxury goods industry has declined since the 200809 crisis, with the exception of the pandemic, Bain partner Federica Levato told Reuters.

The study released on Wednesday will likely heighten concerns among investors that the sector39;s current downturn, which has knocked shares in the likes of LVMH and Kering, may be longer and deeper than anticipated.

Global sales of luxury personal goods spanning clothing, accessories and beauty products are expected to be flat at constant exchange rates during the holiday season, with China39;s performance still negative, Levato said.

A shift by brands to position their products within a higher price band, coupled with weaker consumer confidence amid wars, China39;s economic woes and…