With the health crisis, the majority of the business sectors have experienced a sharp drop in their revenues: this is particularly the case for luxury goods. Despite a historic drop in sales in 2020, this sector could return to its pre-crisis level of activity by the end of 2021, according to the consultancy firm Bain. It says that the buying dynamism of Chinese and American customers and the merits of digitalization could be the main factors in this potential exit from the crisis.
In 2020, shop closures and the virtual cessation of international tourism were a real brake on the growth of the sector. As a result, the total sales of luxury goods fell, something that has not happened since 2009. With a fall of 23%, it hardly reached 217 billion euros. However, the health crisis does not seem to have had a lasting effect on consumer purchasing power for high-end products.
The consultancy firm Bain estimates that there is a 30% probability that sales of luxury clothing, handbags and jewellery will recover in 2021 to their 2019 level.
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