Trends in the luxury market after COVID19
What awaits the industry when the coronavirus pandemic is finally overcome? We share some thoughts from the magazine summum.
The health crisis that is hitting the whole world is causing forced changes in many sectors. Some will be more affected than others and there will undoubtedly be changes in production and customer needs.
Specialists in the fashion industry and several studies published in "Business of Fashion" predict that this will advocate the "slow fashion", slower collections, more thoughtful shopping, ...
As for the world of luxury, on more than one occasion it has been demonstrated that it is a sector "not too sensitive to income or reactive to recessions", as pointed out by Marta Benayas Alamos (ABC).
In fact, in the last crisis of 2008 it was possible to see how luxury suffered less than other sectors, in addition to achieving a more efficient and rapid recovery. Even so, changes in the behaviour of users and the production of goods are foreseeable in the near future.
Production and communication, now more local
According to research carried out by the IMD Business School, published in the magazine Forbes, most luxury companies have a very large part of their production chain in China.
The most likely trend in this area is to opt for more local production to strengthen the industry in the countries of origin and the organisation of portfolios of local luxury brands.
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Slower pace, in buying and selling
In the "post-pandemic stage", it is foreseeable that trips, conferences, presentations, parades, salons, ... will be more difficult to organize and manage. This will cause the pace (both in buying and selling) to be slower.
Broadcasting techniques, on the other hand, are likely to be increasingly focused on digital media. In this sense, companies should strive to associate their brands with good stories and concepts that will engage with customers.
Social responsibility in the world of luxury
The report Restart: 10 Post Covid-19 Trends elaborated by Opinno (consulting company specialized in innovation) reveals other interesting details. For example, they highlight that "ethics will be much more present in both production and distribution".
These are the words of Pedro Monereo, founder of the consultancy firm, who also adds that "there will be a tendency to praise social figures that have contributed to improving the current situation". Credibility, transparency and social responsibility will be determining factors in the luxury market.
Read the original post at Summum (ABC). Photo by Marvin Meyer on Unsplash.
