Nearly 59 per cent of respondents to a survey by the Global Expert Network members of the Luxury Institute believe, current economic slowdown will lead to a downturn in the global luxury goods and services sector. Around 41 per cent predict, current situation will lead to a recession in the global luxury sector with aggressive interest hikes from central banks to result in mass scale unemployment, especially in the technology sector. The survey predicts, consumer spending across all income levels will tighten with persistent fluctuations in the stock market to influence the budgets and psyches of rich consumers.

Recession to impact growth in Asia-Pacific

Respondents believe, sales of luxury brands will be affected to a certain extent. Consumers in the Asia Pacific region, led mainly by China, will remain resilient to the COVID-led disruptions, says a report by Bain & Co. Expecting a recession, the survey shows its impact will be particularly strong in the Asia/Pacific region as China continues to remain vulnerable due to its unstable real estate market, a slowing economy, and continuing supply chain issues. Experts say, the impact of recession on the North American market will be relatively less due to America’s stronger economy, including higher energy self-sufficiency and its distance from the Russia-Ukraine war

Luxury sales in Europe to fall

Experts predicting a downturn in Europe believe sales of luxury goods in the region will fall in the medium range, though those expecting a recession expect a stronger impact. They believe, the Russia-Ukraine war will lead to a rise in local energy prices. It will also increase the prices of consumer staples in the middle of Europe and impact the economic drivers of Europe: Germany, France, and UK.

Consumer technology to ride over recession

The category most likely to survive this downturn is consumer technology, say experts. While consumers’ expenditure on many things is expected to decline, they will continue to spend on food, housing, energy and technology goods and services. The travel and leisure categories will be more heavily impacted despite showing strong growth post pandemic.

The fashion and leather goods category will be more impacted by the downturn than necessity categories. Luxury watches and jewelry category will witness medium level impact due to supply shortages and high investment value.

Department stores to remain worst affected

According to the Luxury Institute survey, department stores will remain the most vulnerable category due to historically high overheads, high inventories, and low margins with digital multi-brand luxury retailers failing to make any profits.

Latest Future Markets Insights report shows, global sales of maternity apparel will increase 5.8 per cent year-over-year in 2021. Demand for maternity apparels will be driven by growing number of women professionals continuing to work through their pregnancy

From 2021-2031, global maternity apparels market is projected to grow at 6.7 per cent CAGR and reach $41.3 billion by 2031. Growth will be driven mostly by improving sex ratio and increasing awareness about new fashion trends for pregnant women. Growing social media influence, celebrity endorsements and presentation of fashion trends through magazines and television are compelling brands to introduce new maternity wear styles. Occasion-specific and venue-specific maternity wear ranges are part of collections. They are offering discounts and customized maternity wear to suit individual needs to boost customer base.

Meanwhile, leading maternity apparel brands are launching innovative garments made from sustainable materials like elastane and spandex. Natural, eco-friendly and organic fabrics to protect expectant mothers and babies from harmful UV radiation are also being introduced.

Outerwear, nightwear to dominate maternity apparels sales

In 2021, the outwear segment of maternity wear is expected to constitute majority share of total maternity wear market, this includes jeans tops, tunics and dresses. Nightwear category is also expected to grow at 12.3 per cent CAGR during the forecast period. Demand for pajamas and nightgowns from brands such as Zara and Mom Store is expected to surge due to their easy mobility and confortable fits.

Cotton to dominate material choices

Maternity apparels priced $100 is expected to account for 60.3 per cent of the total market during the forecast period. In terms of materials, cotton is expected to hold 43.2 per cent of the total maternity apparels market share. Multi-brand store-based retailing is expected to account for 29.3 per cent of total maternity apparels sales during the period. Online retail is expected to grow at CAGR 14.5 per cent from 2021 to 2031. The key growth drivers will be: availability of unique brands, latest trends and affordable prices with big discounts. New opportunities for online retailing

Convenience of shopping and availability of appropriate payment methods is boosting the popularity of online sales in the category. Rise in new e-commerce platforms is expected to create opportunities for brands.

Leading maternity apparel brands are collaborating with other manufacturers to meet growing demand. In September 2020, Nike launched the Nike (M) collection, its first maternity activewear collection comprising four products tailored to changing needs of women's bodies before, during, and after pregnancy.