2020 will be remembered as the worst year ever for luxury sales. The results come from the Bain & company research in collaboration with the Altagamma foundation and the contribution of the major international specialised analysts.
According to the president of Altagamma Matteo Lunelli “in 2020 the pandemic will lead to a 20% drop in turnover”. However, the sector will start again and the long-term trend remains positive, with a growth of 2-3% between now and 2025 led by Chinese purchases which will represent 50% of the total. “Italy’s creative industry, endowed with unique manufacturing, creative and entrepreneurial resources, has all the qualitites to relaunch itself and return to exercising its world leadership”, said Lunelli.
According to the results of the Bain & company research, this year purchases of personal luxury goods, which in 2019 had a turnover of around 281 million euro (up 7% or 4% at constant exchange rates compared to 2018), will experience a sharp slowdown either between 20 and 25%, or between 30 and 35% depending on the shape of the recovery and the restart of tourism.
The largest decreases will be recorded in Europe (-29%) and in the Americas (-22% in the North and -21% in Latin America), also due to their longer exposure to the crisis and the absence of international, especially Chinese, tourist flows. The drop in sales in the former Celestial Empire (-9%, the first to exit from the emergency), Japan (-14%) and the rest of Asia (-16.5%) was less marked. As for products, jewelry (-23%), watches (-25%) and clothing (-21.5%) came off worst, while leather goods (-17%) footwear (-16%) and cosmetics (-13%) stand out as the most resilient categories. Finally, a positive signal comes from online sales, with + 16% in retail digital channels and +12% in wholesale channels.