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Luxury market may be vulnerable to conscious connoisseurs
- 10th Jun 2020
As per a research conducted by luxury consultancy firm, Luxury Connect, even after the lockdown is lifted, the negative impact of the pandemic may still linger, the reason behind this is that the consumers are in a wait-and-watch mode right now as no one is sure about our predicament post the lockdown. As per Dinaz Madhukar, EVP, DLF Luxury Retail and Hospitality, “Even after the lockdown, reopening businesses will take a long time. The impact will be around till 2021 spring-summer when business will start picking up”.
As per Luxury Connect the luxury goods and services market will face a slump of 30-50% by the end of 2020. The most affected sectors will be luxury automobiles and real estate and the sectors with least impact will be Skin care and cosmetics sector as well as wines and spirit sector. As per Bhaswar Paul, Founder, Urban Style Private, “We were gradually recovering in the residential segment for high value property but now there is a delay in transactions. The market will remain volatile unless demand recoups”.
In a survey conducted by Luxury Connect, conscious consumption might replace conspicuous consumption. 55% of their respondents agreed to the fact that luxury consumer’s behavioral pattern will change and this shall be the biggest challenge for the luxury brands to tackle.