Global sales of luxury goods are expected to slump by 50% to 60%
- Global sales of luxury goods are expected to slump by 50% to 60% in the second quarter even as some countries begin to ease coronavirus lockdowns and despite signs of recovery in the Chinese market, consultancy Bain said on Thursday.
- With the April to June decline coming on top of an estimated 25% drop in the first three months of the year, Bain expects global sales of luxury handbags, clothing and cosmetics to shrink by between 20% and 35% in 2020, against a previous estimate for a 15% to 35% decline.
- The consultancy, which produces closely followed forecasts for the sector, says it will take until 2022-23 for revenues to return to 2019 levels, which are estimated by Bain to have totalled 281 billion euros (245.19 billion pounds).
- An April report by fellow consultancy McKinsey said the personal luxury goods industry is expected to contract by 35% to 39% this year.