A sector that is not experiencing the crisis... thanks to the Chinese!
Posted: Sun Jan 12, 2025 5:48 am
After years of insolent growth, the luxury sector finds itself facing a global health and economic crisis for the first time in its history. An unprecedented crisis, which has forced global players to prove their resilience while reinventing themselves.
After an excellent start in 2020, global office 365 database luxury had to face a threat: Covid-19. Successive lockdowns, border closures blocking imports and exports, closure of production sites... The health crisis has severely affected sales of luxury items on all global markets.
- Europe is the most affected market with a decline of 36%,
- North America with -27%,
- Asia with -35%.
The only exception? The Chinese market, which has achieved the feat of experiencing growth of +45%, reaching 44 billion euros in sales thanks to local consumption!
Banned from traveling abroad to places like Paris, Milan or New York, the Chinese, who represent 1/3 of luxury product sales worldwide, have fallen back on local boutiques of luxury groups such as LVMH or Hermès.
Mixed results that remain a blip and not proof of the sector's malaise. When luxury was experiencing annual growth of around 4% to 6%, it is certain that this will return to its usual rate in the years to come. Experts agree on a return to normal by 2022-2023.
Proof that luxury remains a safe haven , in the 3rd quarter of 2020, sales of leather goods and ready-to-wear products from the LVMH group started to rise again (+12%) and the group continues its investments, having just completed the acquisition of the American jeweler Tiffany for a staggering sum of 15.8 billion dollars!
Covid-19, the perfect illustration of the distortion of the luxury market
With the global crisis, luxury players have been forced to reinvent themselves. LVMH and KERING have converted their production lines, manufacturing masks, gowns and hydroalcoholic gels for caregivers rather than bags, perfumes and other cosmetic products. Luxury brands and houses have also strengthened their CSR commitments in favor of more sustainable and responsible luxury . This is reflected, for example, in the emergence of upcycling, an ethical approach to recycling from the top. In an industry that advocated uniqueness, newness and exclusivity, we no longer hesitate to make new from old, to claim an ecological discourse and even to turn to the second-hand market! A small revo
After an excellent start in 2020, global office 365 database luxury had to face a threat: Covid-19. Successive lockdowns, border closures blocking imports and exports, closure of production sites... The health crisis has severely affected sales of luxury items on all global markets.
- Europe is the most affected market with a decline of 36%,
- North America with -27%,
- Asia with -35%.
The only exception? The Chinese market, which has achieved the feat of experiencing growth of +45%, reaching 44 billion euros in sales thanks to local consumption!
Banned from traveling abroad to places like Paris, Milan or New York, the Chinese, who represent 1/3 of luxury product sales worldwide, have fallen back on local boutiques of luxury groups such as LVMH or Hermès.
Mixed results that remain a blip and not proof of the sector's malaise. When luxury was experiencing annual growth of around 4% to 6%, it is certain that this will return to its usual rate in the years to come. Experts agree on a return to normal by 2022-2023.
Proof that luxury remains a safe haven , in the 3rd quarter of 2020, sales of leather goods and ready-to-wear products from the LVMH group started to rise again (+12%) and the group continues its investments, having just completed the acquisition of the American jeweler Tiffany for a staggering sum of 15.8 billion dollars!
Covid-19, the perfect illustration of the distortion of the luxury market
With the global crisis, luxury players have been forced to reinvent themselves. LVMH and KERING have converted their production lines, manufacturing masks, gowns and hydroalcoholic gels for caregivers rather than bags, perfumes and other cosmetic products. Luxury brands and houses have also strengthened their CSR commitments in favor of more sustainable and responsible luxury . This is reflected, for example, in the emergence of upcycling, an ethical approach to recycling from the top. In an industry that advocated uniqueness, newness and exclusivity, we no longer hesitate to make new from old, to claim an ecological discourse and even to turn to the second-hand market! A small revo