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The global personal luxury goods market reached € 224 billion in revenue -at retail equivalent value- in 2014 (Study Bain & Co). And within this sector Europe appears like a fortress. To date, this industry which employs 1.7 million people, in particular in Italy and France, has no significant competitor in the world. The fact is, that consumers around the world associate luxury goods -clothing, bags and accessories, shoes, watches etc...- only with a few European countries and truly believe that the real luxury products are made in Italy, France or Switzerland. An increasing number of wealthy tourists around the globe and in particular the unquenchable appetites of Chinese consumers explain most of the good performance of this sector. It is therefore no surprising that luxury goods sales in Europe are expected to reach € 159 billion by 2018. The French luxury conglomerate LVMH which owns more than 70 brands, holds the highest share of luxury goods retail in Europe with 13.9% followed by Richemont and Kering (Report Conlumino). Uniqueness and rarity of these brands are key factors for the success. And the luxury sector should have a bright future. However, even though European luxury is still " in a world of its own ", this sector will have different challenges to face. And first the digitalization of the economy which has an impact on all businesses. The second will be to continue to attract rich consumers increasingly jaded and therefore less likely to buy prestigious brands. And finally, but equally challenging, will be to continue to train highly skilled craftspeople who are core to the success of the luxury goods industry.

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