Patrick Guadagno was most recently the President and COO of Versace US. Previously, he served as Managing Director of Dolce & Gabbana USA, where he led the transition of licensee status into an in-house corporate. Mr. Guadagno stays current on fashion industry news and market projections.
In early June 2012, the Boston Consulting Group (BCG) released its predictions for luxury market growth through the next two years. The firm expects a worldwide increase of 7 percent each year if the economic climate remains relatively stable. Should the gross domestic products of major developed nations falter, the company predicts a more moderate rise of 3 percent per year.
Several luxury retailers, such as Saks Inc. and Tiffany & Co., have reduced projections for the current year to temper Wall Street’s expectations. Nevertheless, high-end consumers continue to spend on luxury experiences, such as spa treatments, hotel stays, and adventure travel. Brands such as LVMH, which recently launched an upscale, five-star hotel franchise, stand to benefit from this growth in the “experiential luxury” sector, which BCG predicted would increase by as much as 12 percent annually for the next few years.