According to Bain & Company, faced with a global collapse driven by lockdowns and the shutdown of tourism in all key markets, the luxury industry faces a challenge like never before. After falling by an estimated 25% in the first quarter of 2020, the slowdown should accelerate in the second quarter and could lead to an estimated contraction of between 20 -35% for the full year.
China has begun to lead the way toward a recovery and Chinese consumers are set to cement their status as crucial drivers of the industry, accounting for nearly 50% of the market by 2025. Luxury purchases made online have increased throughout the crisis and the online channel could represent up to 30% of the market by 2025.
The online channel, already experiencing double-digit growth in 2019, will continue to gain share and account for up to 30% of the market by 2025. This goes hand-in-hand with the younger generations (Gen Y and Gen Z) becoming the majority of the luxury market. Read more