Will 2021 mark the start of a brand new period of luxurious?
The luxury goods industry is valued at a whopping $ 380 billion worldwide and attracts an affluent customer base who are only too happy to invest in the latest status symbol – from the new season capsule wardrobe from Chanel to the latest fashion must-have from Max Mara. But since the Covid-19 pandemic emerged in early 2020, things have taken an unexpected turn.
Sales declined in the first half of 2020, which was to be expected for most. Almost every sector has suffered from the ongoing crisis, and even the luxury industry is not immune to the widespread impact on our work, our shopping and our entire way of life.
Although the luxury market saw some improvement in the run-up to the Christmas season, the high-end holidays and lavish evenings at the champagne bar were limited throughout December and got completely out of hand for the time being, still a major uncertainty for luxury fashion brands. But the industry weathered the storm surprisingly well compared to most, and a wealthy and net strong customer base kept it afloat.
In 2021 they could soon be thriving more than ever – but with the changes triggered by the pandemic that are likely to continue into the future, including increased demand for designer items online rather than in-store and greater consumer interest in where and how their goods are manufactured, could this be the beginning of a new era?
The luxury industry weathered the storm surprisingly well compared to most. A wealthy and wealthy customer base kept them afloat during the Covid-19 crisis. Photo credit: shawnwilliams4433 / Bigstock.com
A new definition of luxury
It’s not just our daily way of life that has changed over the past year, and slowly but surely, the definition of “luxury” has shifted beneath the surface. This fundamental change has led to increased customer awareness of the environment and its impact on them, as well as increased social awareness. Many brands have to pivot and reevaluate their processes to ensure that they are aligned and want to meet their customers’ current needs.
While “luxury” shopping used to mean going to your favorite boutique for a personal shopping experience and receiving attention, customers increasingly prefer to shop online. This was certainly accelerated by the Covid-19 pandemic, but the shift had started long before that. Convenience is everything nowadays – and the desire for a five-star digital experience has meant that luxury brands have had to improve their online offerings to take this into account.
Maintaining quality in the midst of change is critical for the original high net worth customer base these brands rely on. It is something that in their eyes simply cannot be compromised – and it is this lingering expectation that ensures that it will never lose its original meaning, no matter how many elements of it might evolve to the current climate and an increasingly forward-looking one To match climate. Thought world.
By 2022, the global luxury goods market is projected to reach more than $ 428 million. Photo credit: zdl / Bigstock.com
Market growth in 2021 and beyond
Over the next twelve months, we can expect the luxury goods industry to recover with an estimated growth of 10 to 19 percent, depending on macroeconomic conditions over the year, the development of the Covid-19 pandemic and customer confidence.
By 2022, the global luxury goods market is expected to reach more than $ 428 million – and from 2023 the market is expected to rise, having fully recovered from the effects of the panic and having had time to adjust to the new customer demands it made have slowly but surely changed in the long run.
Whatever the future holds, we know one thing for sure: Luxury, however it develops, will always have a place in our society – and if the leading luxury brands can keep up with the latest demands of customers, then then the future looks bright. With nearly every industry suffering in 2020, 2021 could bring the recovery we’ve all been waiting for.