LONDON, UK – Global market research company Euromonitor International predicts the luxury goods industry will be hit the hardest in 2020, across all FMCG markets, due to coronavirus (COVID-19).

According to the webinar ‘Luxury and COVID-19: Effects on the Industry’ the global luxury goods market was set to grow by 3% in 2020 to reach over US$1 trillion. However, due to the global disruption caused by COVID-19, the industry is set to decline by 18% in Q2 2020.

Fflur Roberts, head of luxury goods research at Euromonitor International comments, “Luxury shopping behaviour, channel dynamics and travel plans are seeing inevitable shifts as a result of lockdowns. With the pandemic having a huge economic and psychological impact, consumers’ sentiment will be severely dampened and premium priced items likely to be affected.”

The market most impacted is Asia Pacific, with sales in China set to decline by 22% in 2020, amounting to a US$68 billion loss. Followed by the US, with a US$52 billion loss in sales in 2020; whilst Italy, France and the UK remain bleak, as they play an integral role, as both key producers and luxury-buying hotspots for wealthy global tourists.

Roberts concludes, “The luxury goods market will most likely bounce back relatively quickly in the medium term, with the surge in e-commerce shopping and the convenience of online shopping converting prior sceptics.”

To access Euromonitor International’s free webinar visit:  https://bit.ly/2WmezCr

Source www.euromonitor.com