In the shops of the avenida da Liberdade, and returned to opening the doors later this week. The rise in the temperature of the sun, and in the rush to get out of the house, help with the shopping and the restaurants in the street of a luxury in Lisbon. The return is done to the extent possible, security measures, anti-covid, and the local and foreign residents. Missing are the tourists, the consumers of luxury with the what and the where) of the avenida da Liberdade has been developed in the last few years.
The movement of the people, the shop is far away from the pre-coronaviruses, up to the limit on the number of people in an enclosed area. No one has the ability to guess what will be the results. For the moment, there is a desire to get back to normal as possible, call the clients, and to the east. With the help of the communication in social networks with influence of digital, and other public figures), to the shops, restaurants and hotels join together with one voice around the initiative #devoltaàavenida. This is the ‘zero point’ for the future of the world’s luxury brands, in Lisbon, and a little more unpredictable than that of the consumer goods of the first necessity.
In this way, in China it is the only possible reference. The echoes that come from the country, which is at the front of the desconfinamento go in two directions at once. After an initial phase of the run-up to the retail stores of luxury brands, once opened, have been reported to be the most recent account of a decline in spending on unnecessary purchases. The young and the middle-class, and the segments that matter most in the growth of luxury consumption in China is still cautious due to unemployment and the level of debt, which were already in place prior to the pandemic. A study by the Southwestern University of Finance and Economics indicate that as many as 40% of the homes in the chinese intend to reduce the consumption, by the year 2020.
On the first day it opens in April, the store, Hèrmes, in Guangzhou to register sales of $ 2.7 million (euros by 2.46 million), which gives an indication of the ‘fortune shopping mall’ (addition of the shopping that is characteristic in post-crisis situations, or after a period of absence from the consumption. In the following month, on the 5th of may, the municipality of Shanghai launched the festival to shop ‘Double-Line’, with the offer of discounts, and long hours in the stores over the next two months. The goal is to promote domestic consumption and to recover from the losses incurred due to the covid-19. What was the result? Combined sales of stores with e-commerce, which amounted to a total of 2.2 billion (€2 billion) in the first day of the project.
In the chinese context is not to be extrapolated to the Uk or to another country, but it is measuring the temperature, the geography, and the consumer is more relevant in luxury goods. In 2019, the chinese contributed 90% of the increase in the consumption of the products in this category, with a total of €19 billion in sales, according to the consultancy Bain&Company. By 2025, the chinese will account for more than half of all purchases of luxury goods, when the global market is worth €320/€330 billion. The impact of the chinese people is not confined to the local markets, taking into account the weight of the luxury shopping when traveling outside of China, and the fact that the tourism industry is the latest to get back to work.
This is the reality, there is a lot that is visible from the avenida da Liberdade, with the vast majority of the stores having the chinese as the main client. In such a way as to have employees who speak mandarin, is it a common practice or even required. They are the chinese, who, in the course of the last decade, to grow and continued to be consistent at this location, in addition to the flows of cyclical for the other countries. A wave of angola, the first, all of the russians (both of them disappeared before the coronavirus). More recently, do the brazilians, many of them residents of Lisbon, it is not only in the shops in the hotels and restaurants, such as the two-Jncquoi, and to the Messenger, for example.
Until the reopening of commercial flights to and from the tour is available to residents of the foreign and domestic customers, which for the luxury business may tell you, the Portuguese did not stand out in the global statistics of consumption in this area. To make matters worse, not only in Portugal, but also at the global level, 40% of luxury sales are made by the consumer on the go. In the circumstances of the evolution of the pandemic and the start of the desconfinamento point to a recovery in the consumer luxury, faster, and stronger in China than in the United States and in Europe. The behaviors of the ‘fortune mall, or shopping to be rational, these are two of the trends that are possible.
The entrance to the new normal brings about an additional fact: the rise in the prices of some luxury brands. To the extent that is surprising and counterintuitive, when there is an excess of stock and to the families of breaks in income and increase in losses. The first is to Chanel and Louis Vuitton, and the price premium is applicable only in the case of some products, and the most iconic, and classic. The Chanel luggage, and leather goods are stamped with an increase of between 5% and 17%, out of the ready-to-wear, bags from the collection this season, and the shoes. Advertised to the global retailers on the 11th of may, as well as in Portugal, where the brand is sold in the Stivali), the increase is justified, the usual practice at this time of the year. Remains to be seen whether the increase is greater than that of the last year, as a way to compensate for the losses resulting from the ‘effect of coronavirus’.
At Louis Vuitton, according to the website WWD, a rise of 5% in may, in addition, and following the rising the previous 3 per cent, in march, in the middle of a pandemic. In the Uk, for example, in the model, a small wallet, New Wave, price €1.490, the cost is now €1.710 (15%), thus leaving open the possibility that in some of the articles there are climbs higher than advertised. The movement of these marks can be followed by other brands in the luxury of a reference, for those who have the heritage of the brand, and they are percecionadas as a classic, which will enable them to drive up the price without losing sales.
You play to your favor of the common trend in the times, post-crisis, the luxury consumers turn to the ‘bankers’, the brands and products that stand for quality and timelessness. In the avenida da Liberdade, it is still too early to feel the pulse of the consumer, within one week of the open doors. We’re going to consume more, as compensation for, or fail to buy due to lack of money or fear of the future? The times of the disruption of world they want to themselves as a ‘path of means’ in the name of balance, and the functioning of the economy. That is, with a shift to more sustainable consumption, buying less but better. The heritage of the quarantine, it is a clear-cut distinction of what is essential from what is prescindível.