Early July 2020, Euromonitor published revised forecasts for luxury goods for 2020-2024 that considered the implications of the novel Coronavirus. Overall, Coronavirus (COVID-19) is expected to severely suppress global demand for luxury goods in 2020, but the pandemic’s effects are expected to be markedly different across different categories and channels. A strong rebound is expected in 2021, but pre-COVID-19 revenues are not expected to be fully recovered until 2022.
This report comes in PPT.
Despite national lockdowns having been gradually lifted in most countries, the COVID-19 pandemic continues to disrupt the global economy and fears of a second wave remain worldwide. The forecasts for 2020 have been marginally revised upwards over the previous quarter, however dark clouds remain on the horizon for the short term.
Pre-pandemic, the luxury industry was already going through a period of disruption on the back of digital development. Significant global investment has accelerated this trend and is now reaching areas where advanced technology was not previously available. COVID-19 sets the tone for future development as digital becomes the dominant means of luxury goods industry participation.
Ethical and sustainable practices among luxury players will still remain top of mind, but will evolve into a greater push towards conscious luxury, driven by digitally-savvy consumers pushing for accountability, inclusivity and brand purpose beyond profits.
The COVID-19 pandemic is accelerating all wellness-related micro trends, with the basic principles of health and keeping diseases at bay as a core priority. With mental and emotional wellbeing front of mind, brands are pivoting towards prioritising mental wellbeing and mood enhancement through new, digital applications.
Traditionally high-income households have been somewhat sheltered by shocks in the financial markets as they have more of a financial cushion, but as the world enters the worst economic recession since the great depression, the outlook remains uncertain in all income groups for the short term with many individuals leaving the ranks of the wealthy.
This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.
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