The global pandemic wipes collectively an estimated $600 billion from the sales of luxury brands. In revising its forecasts, consulting firm BCG stated that luxury sales are expected to drop between $85 and $120 billion in 2020, up from its first $40 billion forecast, with the fashion and luxury category alone losing between $450 and $600 billion.
In comparing the crunch to the financial crisis of 2008, Javier Seara – BCG’s global sector leader for fashion and luxury said, “The previous recession was not a consumer crisis, but a financial crisis,” He further added, “What we are living through right now is more deeply and drastically on a human dimension, it has to do with existential anxiety more than financial anxiety.”
In addition to online and direct sales, tourism buying fashion are also expected to take a hit as traveling in countries will continue to be curtailed long after. A silver lining though is the recovery of the Chinese economy and their re-stated demand for luxury goods. Consumers in the Asian country have already begun shopping and are expected to make a majority of luxury consumption in the coming months.
Louis Vuitton store New York
More from NEWS
BERLUTI debuts new Interiors Collection
An essential aspect of the Berluti lifestyle, furniture has been designed by the Maison since the 1960’s, when Talbinio Berluti …
Ermenegildo Zegna Group full year 2024 profit down, but company upbeat about future growth
With its full-year 2024 results, Ermenegildo Zegna Group issued 2027 guidance of revenues in the range of 2.2 billion to …
CELINE opens brand new store in Singapore at ION Orchard
CELINE has opened a new store in Singapore at ION Orchard. The boutique which covers 240 sqm. The boutique’s façade is …
