Global luxury goods sales to slide up to 35% – study

Published by rudy Date posted on May 7, 2020

by Associated Press, 7 May 2020

SOAVE, Italy — The global luxury goods sector is heading for a stunning collapse of up to 35% this year due to coronavirus lockdowns, according to a new study by the Bain consultancy published Thursday.

Bain Partner Claudia D’ Arpizio said it would take two to three years to return to 2019 global sales of around 281 billion euros ($303 billion) — with the forecast decline much steeper than the single-digit drop recorded after the 2008-9 crisis.

The coronavirus crisis is expected to lead to a spate of mergers and acquisitions of weakened brands, the closure of single-brand stores, and reshaping of already suffering U.S. department stores, D’Arpizio said. Customers are also likely to emerge from global lockdowns with a new set of priorities.

“The psychological aspects will probably reshape these markets for good. There was already a trend toward frugality, more cautious spending and looking for deeper meaning,” D’Arpizio said. “This does not mean people won’t spend money. They will spend money on brands that stand for something, that really engage them. ”

The semi-annual study for the Italian luxury goods producers’ group Altagamma foresees the most dramatic drop in sales during the second quarter, when they are forecast to slide up to 50%, followed by a milder contraction in the second half. The study does not forecast the impact of another round of lockdowns, should the virus peak again.

For the full-year, Bain is forecasting luxury sales of apparel, handbags, footwear, watches, and beauty products of 189 billion euros to 220 billion euros. The degree of the year-end hit will depend on whether there are rebounds in the local markets — something already being seen in China and Asia — and to what extent domestic and regional tourism are able to resume.

July 2025

Nutrition Month
“Give us much more than P50 increase
for proper nutrition!”

Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of
Forced Labour and Freedom of Association protocols.

Accept National Unity Government (NUG)
of Myanmar.  Reject Military!

#WearMask #WashHands #Distancing #TakePicturesVideosturesVideos

Time to support & empower survivors. Time to spark a global conversation. Time for #GenerationEquality to #orangetheworld!

July


3 July – International Day of Cooperatives
3 Ju
ly – International Plastic Bag Free Day
 
5 July –
World Youth Skills Day 
7 July – Global Forgiveness Day
11 July – World Population Day 
17 July – World Day for
International Justice
28 July – World Nature Conservation Day
30 July – World Day against Trafficking in Persons 


Monthly Observances:

Schools Safety Month

Nutrition Month
National Disaster Consciousness Month

Weekly Observances:

Week 2: Cultural Communities Week
Micro, Small, and Medium Enterprise
Development Week
Week 3: National Science and
Technology Week
National Disability Prevention and
Rehabilitation Week
July 1-7:
National Culture Consciousness Week
July 13-19:
Philippines Business Week
Week ending last Saturday of July:
Arbor Week

 

Daily Observances:

First Saturday of July:
International Cooperative Day
in the Philippines

Categories

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.