Hermes Intl: The luxury sector could reconnect with its level of pre-crisis activity from 2021-Bain
Reuters |
Milan, May 17 (Reuters) - The luxury sector could get out of the crisis linked to the coronavirus this year, notably thanks to the high demand from Chinese and American buyers, the Bain consulting firm said on Monday.
Bain estimates at 30% the probability for sales of handbags, clothing and high -end jewelry to return or exceed their 2019 level this year, or 280 billion euros (340 billion dollars), depending on the rate ofVaccination campaigns against COVID-19 and the resumption of tourism.
The most likely scenario is that of a complete recovery in 2022, Estem Bain, which is more optimistic about its forecast last November in which it estimated that the sector would definitively recover from the crisis in 2023.
Last year, luxury products sales dropped from 23% to 217 billion euros, the highest drop ever recorded and the first since 2009, the pandemic having led to the closure of stores and the quasi-assetInternational tourism.
However, the crisis does not seem to have had a lasting impact on the appetite and the purchasing power of consumers for high -end products.
The surge in sales in China, the largest market for luxury products, and a rebound stronger than expected in the United States thus allowed a clear rebound in sector income in the first quarter of 2021.
"The American market has been the unexpected strong point," said Bain, while Europe, hampered by a slower vaccination campaign and tourism restrictions, remains lagging behind.
The pace of the recovery was indeed uneven.The giants of the sector, such as LVMH, Hermès and Kering, are already above their levels of 2019, while smaller labels like Ferragamo and Tod's must still catch up.
The crisis has forced brands, traditionally reluctant to sell their products online, to adopt electronic commerce, which could become the main luxury products purchase channel in the coming years.
And if handbags, leather goods and jewelry have been the engine of the recovery, clothing expenses, makeup and perfumes should also intensify with the end of the confinements.(Silvia Aloisi; French version Federica Mileo, edited by Blandine Hénault)
- Prev
- Next
