Impacts: a dramatic drop and a slow restart The coronavirus pandemic had a strong impact on the first quarter of 2020, directly affecting the luxury industry. The warning signs appeared in January when the virus was already hitting China, a real engine of the luxury sector alone representing 90% of the growth of the sector in 2019 for 35% of global sales . As the epidemic spread and authorities in different nations began to take action to cope; on the one hand, the brands gradually found themselves unable to sell their products on the one hand but also to produce them on the other hand , in particular as a consequence of the closure of factories and suppliers in countries such as France or Italy.

China now seems to be regaining a certain stability and consumers are gradually resuming the course of their usual lives; In Pakistan WhatsApp Number List this context, merchants in the luxury sector are trying to find out what they can expect from the recovery. However, at this point, the too many remaining unknowns prevent specialists from seeing a clear scenario regarding the impacts of the pandemic and the consequent measures at the level of the luxury sector: we do not know when the virus will stop spreading in the region. planet and therefore it is impossible to predict how it will affect the global economy and consumer behavior. According to the Bain & Boston Consulting Group, sales could fall 35% this year , down $ 600 billion from 2019 .

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This would then be a significantly larger fall than during the 2008-2009 crisis. This decrease is explained by a few obvious factors such as the closure of many points of sale and factories, threats of increased unemployment following the pandemic or simply a distrust of consumers to spend their money in the face of the obvious threat of death. ‘a coming economic crisis. In its briefing note published on March 25, McKinsey & Company declared that the clothing, fashion and luxury goods sector would be the second most affected sector after the aerospace and air travel sector.

They then estimated a recovery horizon in the 1st or 2nd quarter of 2021 for the aviation sector and slightly earlier for the 2nd or even 3rd quarter of 2021 for the clothing, fashion & luxury sector, having also lost 28% of market capitalization . There are of course many variables and uncertainties about the outcome of this pandemic but there is one forecast on which a consensus appears: There will indeed come a time when this situation will end and when the consumption indices will return to positive values . To be efficient at the arrival of this moment and to make the most of it, the merchants must be prepared for this revival; develop and structure powerful strategies that will correspond to new consumer trends .

The luxury market in the time of COVID-19 When going through tough times involving lost revenue and lost profits, businesses have to cut costs, and one of the first cuts they make is often made to the marketing budget. “Why invest in a marketing campaign aimed at a client group if it is not in a buying position? »Is often the question that comes up. The answer is, however, intuitive and those who experienced the 2008-2009 crisis know it: an optimized strategy perfectly aligned with customer knowledge , centered on both their physical and emotional needs, allows brands to maintain their relevance and their market share while strengthening the links established with customers and prospects.

So when consumption starts to rise again, and it always does, those anticipatory companies are the first to take advantage of the recovery and reap the benefits. Knowing this already, some luxury brands have quickly reviewed their strategy since the start of this crisis to move towards a consumer-centered approach and initiate social action initiatives. Thus, the first action taken by market leaders was to adapt their communication channels by trying to migrate as many promotional or event campaigns as possible to online media. At the same time, stringent health and safety measures have been put in place and as much as possible in-store purchases have been discouraged or even substituted.

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