The impact of COVID-19 is seen on the global luxury market as the closure of many retail stores worldwide. Bain and Company reported that the pandemic will have serious threats on the sector, with a chance of a 35% sales drop by the end of 2020.
Global pandemic cases are spiking to 29,155,581 as of 15 September 2020, the death tolls 926,544 as per the WHO report.
China is predicted to recover at a faster rate, compared to Europe and the US who will be affected for a longer duration. India after the complete lifting up of lockdown is also expected to speed up the economy with the actions taken by the Modi Govt and seemingly may emerge as a stronger nation in the coming months.
With the fashion shows gone virtual, luxury markets are in need of a digital transformation and much more engagement on social media, addressing problems and sensitivity towards the safety and wellbeing.
The pandemic has impacted people’s buying behavior and evoked their sentiments towards health and environmental issues. Companies like Louis Vuitton to loreal took social initiatives like producing sanitizers, masks, medical gowns to remain socially relevant.
Luxury Brands are in a need of innovation and strategies to cope up with the new normal. They need to proactively re-invent and touch people’s emotions again to survive the COVID-19 impact.