At this point of the season, it is unlikely that any sector of the market has been immune to the pandemic.
In this way, the luxury market has also been affected and are looking for ways to adapt to this new reality.
In a report in the british newspaper the Financial Times has made a substantial report on the situation on the market of high-end designer labels.
One of the first adjustments made in the physical space, where the shops with their luxury products, they divide the space with masks and alcohol gel.
However, it is an issue that worries you the brands christian Dior, Chanel, Gucci and Louis Vuitton: the lost of the customer and the claims you make.
What you will see in this article: (a)
The asian market
Even though some european capitals, such as Paris, Rome, and Milan, they are coming back to life, and the major customers have not yet returned.
This is one of the chinese tourists who, according to the FT, they are responsible for two-thirds of all sales in the industry of luxury in Europe.
In this way, the primary fear of the nothing that is, that the return of the customer base in the chinese part of the horizon is still far away.
Remo Ruffini, chairman, president and chief executive officer of the Italian manufacturer of luxury, Moncler, one expects that the impact of the pandemic will bring the changes needed in the industry.
“The normal time remain in the distant horizon. When the business-as-usual is not possible, it’s the perfect time for us to rebrand,” said Ruffini in the FT.
The work on the body
As has been the case in many sectors of the market, the sale of luxury products, it also has to be on the internet.
However, Ruffini is attentive to the reality of the market for high-end designer labels: as the scan with the runway, and the collective efforts of the seam. Here is a challenge.
Some of the brands you already are studying shows online streamed to your glass for the coming season.
According to Luca Solca, an analyst at Bernstein’s, a top priority of the top luxury brands, it will be for the sale of the shares.
The analyst predicts “the mother of all sales at the end of the season.”
The analysts of the major brokerage firms are alert to the transformations that follow.
The luxury industry will need to adapt to online sales and discounts, a practice unusual in the industry.
According to the FT, a study carried out by the Firm, with a thousand consumers of the products of the brand in the united states and Europe, revealed that 24% had made purchases online in the first place.
Within the universe of the survey respondents, 76% rated it as a positive experience, from purchase through to digital.
In the end, the survey indicates that, by 2025, online sales have accounted for almost 30%.
The luxury of Europe and Asia
According to a report by HSBC, e-commerce sales of luxury may fall out, also in that year, at 17%.
Bain & Company forecasts that it can reach up to 30%.
On the other hand, Moncler, LVMH and Jering reported continued strong demand in China.
However, the chairman of Richemont, has warned of “serious economic consequences” that could drag on for three years.
According to Erwan Ramboug, an analyst with HSBC, in which the pandemic will force a transformation in the physical stores.
In the end, Ramboug states that the number of stores should be substantially decrease in Europe and increase in China.
The future of the luxury market
The consulting firm Bain & Company states that, for a recovery of the levels of the 2019 bonds is not going to be completed by 2022/23.
In this way, the recovery of the luxury market should be gradual and, most likely, in 2025, it will reach the mark of £ 320 and 330 billion.
However, it all depends on the responses of the players in the luxury and the ability to transform the industry.
According to the press release, in the mainland of China, representing 28% of the luxury market by 2025, compared to 11% in 2019.
The advisory also reinforces the view of other commentators: in the online marketplace.
By 2025, online sales should be answerable to over 30%, this is due to the generations Y and Z, the majority of the luxury market.
In the end, the consulting firm says in its report that all the restaurants that best know how to view the current time and still keep your originality, keep the story of the individual, and will guarantee you a place in the market.