A new survey by consulting firm McKinsey & Company, in partnership with Italian Fashion Chamber (CNMI) and Pitti Immagine says, the crisis caused by the COVID-19 pandemic will leave long-lasting scars in the luxury sector, and recovery will be slower than predicted. The sector will to wait till the second half of 2021 to generate the same levels of shares as recorded in 2019. Global luxury goods sales are expected to drop by €130 to €140 billion in 2020, down from the €390 billion the industry was worth in 2019, and by another €40 to €50 billion in 2021.

Between January 1 and March 18, the fashion and luxury industries lost nearly 30 per cent of its stock market value. The market capitalization of leading fashion and luxury labels plunged with their share prices falling 32 per cent, while those of departments stores lost 50 per cent, and independent labels fared a little better, their share prices losing 26 per cent on aggregate. The survey found that personal luxury goods companies expecting their revenues to decline by 20 per cent - 60 per cent in 2020, while their EBITDA will suffer heavy losses too.