Quo vadis luxury? – BusinessWorld online

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LUXURY stores are reopening in Greenbelt 3, including Louis Vuitton, Fendi, Dior, Thom Browne, Bvlgari and Kenzo.

Things are looking up for well-known post-COVID brands

While things may still look grim in the retail arena as the COVID-19 pandemic (2019 coronavirus disease) continues to spread, things are actually improving, especially for brands of luxury.

FAME + Market Days, a reconfigured online version of the capital’s largest design fair, introduces Vogue Business Head of Advisory Anusha Couttigane for a webinar entitled “PH Fashion: The Leap to Global”. The webinar was broadcast via Hopin on October 20.

Ms. Couttigane focused on the effects of the COVID-19 pandemic on global markets and post-pandemic recovery strategies. “The luxury industry is expected to experience considerable growth, according to data from the BCG (Boston Consulting Group),” said Ms. Couttigane. “In the context of COVID-19, a full recovery is expected between the end of 2021 and 2022. When you look at it at the segment level, the luxury personal goods industry, although it is expected to grow significantly from here 2025, it is in fact set to represent a smaller proportion of the entire luxury industry.

“I don’t want this to sound the alarm, as this segment will grow from an estimated value of $ 340 billion today to around $ 390 billion by 2025, with the potential for this segment to expand to $ 440 billion by next year., “She said.

“It really depends on the different economic scenarios. Of course, there is still a lot of uncertainty in the world today.

She points out that experiential seeking (a preference known to millennials and generations after) has changed the way we consume: “These are actually the experiences that stimulate development and should extend further,” she says. “This suggests that there might be opportunities for collaboration or extension in industries such as housewares or hospitality and leisure, perhaps collaborating with hotels, for example, to really drive success. commercial.”

A BCG article titled “A New Era and a New Look for Luxury” by Sarah Willersdorf, Joël Hazan, Guia Ricci, Alexandre Prénaud, Filippo Bianchi, Javier Seara and Veronique Yang says “Brands must create online experiences that are feel exclusive and beyond what non-luxury retailers are offering. Experiences should consider not only purchases and purchasing transactions, but also related activities such as fashion shows, private screenings, personal shoppers, white glove delivery and other personalized services.

KEY CITIES
Ms. Couttigane also underlines the different post-pandemic recovery rates in cities. “When we look at this regionally, it’s really important to know that the post-COVID-19 recovery is unfolding at a different pace depending on which city you are in. She says that while London is “going in the right direction,” its pace is slower than that of capitals such as Paris, Tokyo and Amsterdam.

“There is much greater recovery and progress in cities like Rome, Stockholm… and New York. When considering which cities to expand or expand your footprint, or where you might have physical retail inventory, it’s very important to note where the faster pace of recovery is going, ”she said.

” Be ready [for] returns on investment may be slower in those cities that are on a slower path to recovery. “

ON-LINE
Ms. Couttigane recognizes the shift to online sales during the pandemic, which arguably made the world even smaller and more accessible.

“We know the line went through a huge time during the pandemic. It is the primary means used by consumers to access fashion items, ”she said. “The focus is on online business performance, especially among smaller brands and companies that currently have sales of less than 100 million euros. If you are one of those companies that operate around a hundred million dollars or less, then it’s really important to be aware that your rivals in this income segment are going to be investing heavily in digital, and that is there you are going to see more fierce competition. – Joseph L. Garcia


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