Blog Fashion | NEWS
How Will The Covid-19 Vaccines Affect Luxury Market?
- 17th Dec 2020
After almost one year since the COVID pandemic started, various industries have been affected. The lives of million people have changed-while some got fired from their jobs, some realised their real passion after staying in the four walls. People have changed, lives have been lost and finally the vaccine news is around the corner. But even with the vaccine around the corner, how is the luxury fashion industry fairing?
Fashion industry remains to be one of the most suffering industries as almost three-quarters of companies have lost their money.
By the end of 2019, various countries had started facing the shockwaves of coronavirus and the industry already began witnessing some changes like change in consumer behaviour, disruption in supply chains. By the time the 2020 year end approached, countries again started facing the second wave of the pandemic. There has been a report which forecasted a staggering 90% economic profit decline across the industry in 2020.
It also says that the industry will take the next two years at least to recover from this. One of the most important predictions made by industry leaders include sales declining by between 0% and 5% in 2021 compared to 2019. Secondly, sales growth will decline by 10 to 15% over the coming year compared with 2019.
As shopping shifts to digital from offline, consumers continue to champion fairness and social justice. Consumers want brands that help them out not only during such pandemics but also socio-political movements like #BlackLivesMatter. If your brand lacks value, consumers will discredit your brand.
Consumer behaviour is set to affect the demand and market trading conditions ahead. Companies must not overlook digital presence as they did before. Focusing on developing more engaging content and social experiences will encourage the consumers. Looking at the ‘new normal’, companies, boutiques and stores should set their sight higher and think of long term. If they can come up with new strategies and perspectives to old, conventional ones then it can help the business.