Global market research company Euromonitor International predicts the luxury goods industry will be hit the hardest in 2020, across all FMCG markets, due to COVID-19.
According to the webinar ‘Luxury
and COVID-19: Effects on the Industry’ the global luxury goods
market was set to grow by 3% in 2020 to reach over US$1 trillion.
However, due to the global disruption caused by COVID-19, the industry
is set to decline by 18% in Q2 2020.
Fflur Roberts, head of luxury goods research at Euromonitor
International comments, “Luxury shopping behaviour, channel dynamics and
travel plans are seeing inevitable shifts as a result of lockdowns.
With the pandemic having a huge economic and psychological
impact, consumers’ sentiment will be severely dampened and
premium-priced items likely to be affected.”
The market most impacted is Asia Pacific, with sales in China set to
decline by 22% in 2020, amounting to a US$68 billion loss. Followed
by the US, with a US$52 billion loss in sales in 2020; whilst Italy,
France and the UK remain bleak, as they play an
integral role, as both key producers and luxury-buying hotspots for
wealthy global tourists.
Roberts concludes, “The luxury goods market will most likely bounce
back relatively quickly in the medium term, with the surge in e-commerce
shopping and the convenience of online shopping converting prior
sceptics.”
To access Euromonitor International’s free webinar visit: https://bit.ly/2WmezCr
