The fate of the luxury goods industry is uncertain, to say the least.
Even with the global pandemic in full swing, the much-affected luxury fashion industry is still determined to undo the damage and continue to grow. The industry has taken a lot of hits as many stores are closing down and many consumers are not looking to spend money on these goods.
For instance, LVMH which is in charge of Louis Vuitton, Dior, Fenty beauty, etc, has incurred a loss in revenue of about 20-30%. Bernard Arnault, the head of LVMH has seen a significant drop in his net worth, about 25-30$ billion according to BBI (Bloomberg Billionaires Index). The company is in the works of coming up with a plan, that can help make up for the losses.
Even retailers like H&M, Marks & Spencer, and Zara, are hugely downsizing and closing down stores. These brands are not in the luxury goods space but are huge in fast fashion. This may be the time that encourages people to finally delve into their local markets and appreciate the art their own countries offer. Consumers may start to pay more heed to local designers and brands, which can be good news for the development of the countries’ talent.
Luxury goods markets are getting hit hard all over the world. The majority of the revenue comes in from Europe and China, which have been hit significantly. The luxury market in India is relatively smaller than it is in other countries. Nevertheless, across nations, the effect was felt in the same way. Due to all the transactions being shut down and customers not being able to or wanting to spend too much on luxury goods. The brands are hoping that one of their biggest markets, that is, China, revives soon. As there are some signs of recuperation in China and South Korea after some sales were made in recent times.
On the other hand, Even in times of trouble, many luxury brands have offered their services and resources to help out the community. LVMH, Bvlgari, Gucci, etc are using some of their factories to produce medical gowns, masks and other safety necessities needed for the betterment of the community.