Luxury industry analysts at Bain and Altagamma have issued a new report highlighting the extent to which this sector has been affected by covid-19, reports Leatherbiz.
They have estimated a value of €217 billion for the wider luxury industry for 2020, a decline of 23% compared to 2019. This will represent the first decline for this sector since 2009.
“It has been a year of profound global change in the way we live, the way we shop and what we value,” the analysts said. “Tourists have remained at home, changing how, when and why they purchase luxury products.”
They said online shopping for luxury goods has soared, doubling its share of the market to 23% in 2020 from 12% in 2019.
Luxury goods are on a path to recovery by 2022 or 2023, they said. Their estimate is that in 2021 the market will recover 50% of the profit brands have lost in 2020, but revenues are likely still to be below 2019 levels.
Bain and Altagamma expect the recovery to gather pace over the next three years, with the market returning to 2019 levels by the end of 2022 or early 2023.