As per a report by Leatherbiz, luxury industry analysts at Bain and Altagamm estimate the industry to decline by 23 per cent to €217 billion in 2020 as compared to 2019. This will represent the first decline for this sector since 2009. As per analysts, 2020 has changed the way consumers live and shop and the things they value. There has been a profound decline in tourism with most tourists remaining at home. This has changed not just their mode of luxury shopping but also the reasons behind it.

Online shopping for luxury goods has soared, doubling its share of the market to 23 per cent in 2020 from 12 per cent in 2019. The analysts expect luxury shopping to recover by 2022 or 2023. They estimate market to recover 50 per cent of the profit that brands have lost in 2020. However, revenues are likely still to be below 2019 levels.

Bain and Altagamma expect recovery to gather pace over the next three years, with the market returning to 2019 levels by the end of 2022 or early 2023.