According to the latest study by the German investment bank Berenberg, the impact of the health crisis on the luxury sector will be minimal, and some of its players will even fare better than before the pandemic.
In its latest sector study, the investment bank Berenberg observed the impact that the health crisis would have on luxury and the consequences of the Covid-19 pandemic on the sector. The survey, conducted among 4,525 luxury-oriented Chinese consumers, reveals that this luxury clientele plans to spend more in 2021.
Thus, the research department highlighted the fact that, regardless of the form the recovery will take, in the medium term, it will not affect the demand of the luxury sector. The broker estimates that luxury will continue to grow without any after-effects until 2025, driven by sales in China and e-commerce.
The investment bank also studied the positioning of luxury houses expected at the end of the health crisis and noted that some of the big names in the luxury industry would emerge stronger and more willing to capture long-term growth.
The consulting firm cited LVMH and Kering in particular and stated that the latter would have a more attractive valuation than the group headed by Bernard Arnault. Berenberg sets the target share price for LVMH at 575 euros, while for the owner of Gucci, the target is 665 euros.
Read Also > UNITED-KINGDOM: STRONG GROWTH IN DEMAND FOR SWISS WATCHES
Featured Photo : © Berenberg
