Coronavirus hits hard – Luxury Fashion sales dip by $600 billion worldwide

The global pandemic has called for curfews, lockdowns, and social distancing across the world. People are advised against stepping out of their homes, let alone go shopping. And in such a scenario, the luxury fashion vertical is the worst hit. Brands across the globe are facing a dip in sales -one that is collectively estimated to total at $600 billion.

In revising its forecasts, consulting firm BCG stated that luxury sales are expected to drop between $85 and $120 billion in 2020, up from its first $40 billion forecast, with the fashion and luxury category alone losing between $450 and $600 billion. In comparing the crunch to the financial crisis of 2008, Javier Seara – BCG’s global sector leader for fashion and luxury said, “The previous recession was not a consumer crisis, but a financial crisis,” He further added, “What we are living through right now is more deeply and drastically on a human dimension, it has to do with existential anxiety more than financial anxiety.”

In addition to online and direct sales, tourism buying fashion are also expected to take a hit as traveling in countries will continue to be curtailed long after. A silver lining though is the recovery of the Chinese economy and their re-stated demand for luxury goods. Consumers in the Asian country have already begun shopping and are expected to make a majority of luxury consumption in the coming months. Whether or not brands will be able to match up the demand with an equivalent supply though is for time to tell!

[Via: Vogue Business]

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