40% Luxury Brand CEO Agrees That The Epidemic Will Break The Old Rules Of The Industry.

 

The report also shared a survey of 1000 luxury goods consumers from the luxury industry and over 1000 luxury consumers from the US and EMEA regions (Europe, Middle East and Africa).

 

The focus of the discussion is that the electricity supplier business is particularly important. The luxury goods industry worth about 390 billion euros will undoubtedly be affected by the epidemic, but compared with the industries such as garments and jewellery, the negative impact of accessories, cosmetics, food and wine industries will be relatively low, thanks to the convenience of online shopping.

 

The industry believes that if the epidemic is curbed, global luxury sales in 2020 may be reduced by about 1000 to 110 billion dollars, and will return to the level of 2019 in 2021. About 40% of respondents to CEO believe that the rules used in the luxury industry will be redefined.

 

80% of consumers will return to stores cautiously. Young people are more likely to start spending again. Consumers will prefer brands that are winning by quality and their own value, and their shopping choices will be more prudent. At the same time, sustainability, inclusiveness, safety and online experience are also important factors. Smaller local retailers will also get attention again.

 

 

 

The Chinese market is gradually emerging from the impact of the epidemic, and young consumers will determine the pace of economic recovery. But the industry believes that China's tourism industry will not quickly revert to the pre epidemic level: McKinsey estimates that by the autumn of 2020, 40% of consumers will not travel. In October, with the advent of national day, the number of tourists is expected to increase by 30%, but will be concentrated in domestic or near destinations. But tourism shopping is still hard to pick up.

 

In the United States, Saks Fifth Avenue, Neiman Marcus and Nordstrom and other large high-end department stores have begun to discount in the electronic business platform, with a discount of up to 40%.

 

Global fashion week has also undergone tremendous changes. Carlo Capasa, chairman of Italy Fashion Association, mentioned the first online Milan fashion week to be held in from July 14th to 17th. In addition, he emphasized the importance of establishing a brand new online organization specifically for contacting buyers and providing procurement efficiency.

 

In addition, in the face of the current protests in the United States, brands must remain sensitive. Consumers are paying more and more attention not only to products but also to the values they carry. In the future, the brand needs to establish an international team in the design and marketing department to ensure the inclusion of the brand as much as possible. This will become more and more important.