A new study from Bain & Company states in the next three months, though the luxury industry’s total earnings are likely to spiral down by 60 per cent, increased spending by Chinese consumers will lead to the recovery of the market. Around 50 per cent of luxury purchases are likely to come from mainland China. The country accounted for almost 35 per cent of global luxury spending last year, but Bain suggested it will increase exponentially despite the recent lockdowns and the threatening presence of COVID-19.
Popular brands are reportedly seeing a surge in demand as well as China finally eased stay-at-home measures. The number of store visits, on the one hand, fell half compared to last year.
Bain expects by 2025, the market would reach new high levels between €320 billion and €330 billion. China would account for half of the global luxury spending worldwide, while the rest of Asia will follow closely. On the other hand, the United States, Europe, and Japan will experience a dip and stabilisation phase before recovery.
