This has been a transformational week for the UK as the Government eased rules around lockdown, devolving responsibility and ‘common sense’ from politics to the people. In a bid to kick-start the economy and resume some semblance of normality, one sector that all eyes will be on is retail. This week, we take a closer look at the luxury industry. This sector has taken a huge hit with the pandemic but is it all doom and gloom or is this a once-in-a-generation moment to redefine an industry where trends like conspicuous consumption and societal values have shifted in a more dramatic way? The jury is out…
Despite some of the more severe lockdown restrictions relaxing (or even being lifted in places like Germany and France) the COVID-19 pandemic rages on, raising questions about the fate of the luxury market. Just this week, Bain & Company released a report examining the impact of the pandemic on the personal luxury goods market, suggesting COVID-19 “presents an unprecedented crisis for the industry and forces luxury players to jump into the future now.” And whilst they acknowledged that the personal luxury goods market is set to contract by 20 – 35 per cent in 2020, this will be a moment of immense transformation as the industry sets on a path of recovery.
