14-5-2020
Bain & Company predicted global revenue for luxury goods would contract between 20 and 35 percent in the whole 2020 following a 25 percent slump in the first quarter of 2020, which may take two to three years to return to 2019 global sales of around US$303 billion.
The Bain & Company Luxury Study 2020 Spring Update's lead author Claudia D’Arpizio commented the coronavirus crisis forces the industry to think more creatively and innovate even faster to meet a host of new consumer demands. “Safety in store will be mandatory, paired with the magic of the luxury experience: creative ways to attract customers to store, or to get the product to the customer, will make the difference,” said the study’s co-author Federica Levato.
On the other hand, luxury goods e-commence, which already enjoyed growth throughout the crisis will remain robust and represent around 30 percent of the global market by 2025.
McKinsey & Company also issued a report in April which estimated that global luxury goods market is set to shrink between 35 to 39 percent this year.
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