Fashion apparel and accessories traditionally dominate the luxury sector, however cosmetics has now come to the fore.
According to market analyst Warc, luxury firms based in Europe must focus on enhancing their products and targeting potential pockets of growth such as exports and cosmetics.
More resistant category
Growth in the luxury goods market is expected due to a considerable amount of new consumer spending patterns; which cosmetics is the largest beneficiary.
Joel Palix, president of the fragrance, skin care and cosmetics maker Clarins, agreed, when speaking to Women's Wear Daily, stating that the diverse conditions of the individual categories in the sector are a key factor.
"In cosmetics, business is still good in Europe. In times of difficulty, a lipstick or a fragrance is a great product to buy, so we're more resistant," he said. "Now if you talk about fashion, we are more dependent on the weather."
Thierry Andretta, CEO of French fashion firm Lanvin, has asserted that prioritising the basics of luxury is vital to prospering in the present environment.
"You have to be very coherent with the product, and it pays, or at least it has for us. The fact that we have very selective distribution, with which we have developed the business, is what has made the difference for us."
Weak euro aids exports
Gildo Zegna, CEO of Ermenegildo Zegna, also suggested that there were some broader benefits to the current climate, however grim the European outlook.
"We have the advantage of a weak euro, which helps grow our exports," he said.
Some luxury-brand items appear to be less of a priority in the coming year, however it is good news for the cosmetics industry as market researcher Ruder Finn reports 43 per cent of respondents it surveyed are increasing their spending on luxury cosmetics.
"We are seeing a change in spending patterns, not a drop in the desire for luxury items,” says Elan Shou, vice president of Ruder Finn Asia.
Consumers are said to be cautiously planning for the year ahead, but executive director of Ipsos, Simon Tye says despite this, they will not stop shopping, "They will just be buying different luxury items."