{"id":115631,"date":"2020-11-19T19:29:00","date_gmt":"2020-11-19T16:29:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/global-luxury-sector-set-for-largest-ever-fall-in-2020-but-china-is-flourishing\/"},"modified":"2020-11-19T19:29:00","modified_gmt":"2020-11-19T16:29:00","slug":"global-luxury-sector-set-for-largest-ever-fall-in-2020-but-china-is-flourishing","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/global-luxury-sector-set-for-largest-ever-fall-in-2020-but-china-is-flourishing\/","title":{"rendered":"#\n  Global luxury sector set for largest ever fall in 2020. But China is flourishing"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a407010bbe45\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a407010bbe45\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/global-luxury-sector-set-for-largest-ever-fall-in-2020-but-china-is-flourishing\/#Local_consumption_has_roared_ahead_across_all_channels_categories_generations_and_price_points_in_mainland_China\" >Local consumption has roared ahead\u2019 across all channels, categories, generations, and price points in mainland China<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/global-luxury-sector-set-for-largest-ever-fall-in-2020-but-china-is-flourishing\/#Chinese_women_walk_by_a_luxury_store_in_Beijing\" >Chinese women walk by a luxury store in Beijing.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/global-luxury-sector-set-for-largest-ever-fall-in-2020-but-china-is-flourishing\/#Lina_Saigol\" >Lina Saigol<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Global luxury sector set for largest ever fall in 2020. But China is flourishing<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Local_consumption_has_roared_ahead_across_all_channels_categories_generations_and_price_points_in_mainland_China\"><\/span>\n  Local consumption has roared ahead\u2019 across all channels, categories, generations, and price points in mainland China<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000073994\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:67.890625%;\" data-mobile-ratio=\"67.890625%\" data-layout-ratio=\"67.890625%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-262182?width=140&amp;size=1.472957422324511 140w,\nhttps:\/\/images.mktw.net\/im-262182?width=540&amp;size=1.472957422324511 540w,\nhttps:\/\/images.mktw.net\/im-262182?width=620&amp;size=1.472957422324511 620w,\nhttps:\/\/images.mktw.net\/im-262182?width=700&amp;size=1.472957422324511 700w,\nhttps:\/\/images.mktw.net\/im-262182?width=860&amp;size=1.472957422324511 860w,\nhttps:\/\/images.mktw.net\/im-262182?width=1260&amp;size=1.472957422324511 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-262182?width=620&amp;size=1.472957422324511\" data-enlarge=\"https:\/\/images.mktw.net\/im-262182?width=1260&amp;size=1.472957422324511\" alt=\"\" title=\"Chinese women walk by a luxury store in Beijing.\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"Chinese_women_walk_by_a_luxury_store_in_Beijing\"><\/span>Chinese women walk by a luxury store in Beijing.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>      <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            Kevin Frayer\/Getty Images<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       China will become the world\u2019s biggest luxury market by 2025, with Chinese consumers set to make up almost half of global spending on luxury goods by 2025, according to a new report.<\/p>\n<p> Mainland China was the only region globally to end the year on a positive note, with sales rising 45% to \u20ac44 billion, as international <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a> restrictions led more consumers to shop in their home country, Bain &amp; Company said in a report published on Nov. 18. <\/p>\n<div class=\"paywall\">\n       \u201cLocal consumption has roared ahead across all channels, categories, generations and price points,\u201d the consulting firm said.<\/p>\n<p>International luxury goods companies are stepping up their efforts to connect with China\u2019s shoppers. Earlier in November, online luxury retailer Farfetch FTCH secured a $1.1 billion investment from luxury-goods company Richemont CH:CFR and\u00a0Alibaba BABA, which will allow it to tap into the Chinese <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> giant\u2019s 757 million customers.  <\/p>\n<p>Despite the strong recovery in China, Bain forecasts that sales of luxury goods worldwide are set to fall by 23% to \u20ac217 billion ($257 billion) this year, with operating profits dropping by 60%. That marks the largest drop recorded since 2009.<\/p>\n<p>The overall luxury market, which encompasses both luxury goods as well as experiences such as private jets and yachts, fine wines and gourmet food, shrank at a similar pace and is now estimated at <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roximately \u20ac1 trillion. <\/p>\n<p>\u201cWe have all experienced a difficult year of rapid, unexpected changes and luxury has not emerged unscathed,\u201d\u00a0said Claudia D\u2019Arpizio, Bain partner and lead author of the study, which was done in collaboration with <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/altagamma.it\/news\/info\/155\/\" class=\"icon none\">Altagamma<\/a>, the Italian luxury goods manufacturers\u2019 foundation.<\/p>\n<p>\u201cWhile the industry has suffered from a pause in global travel and ongoing lockdowns, we believe it has the necessary resilience to manage through the crisis,\u201d D\u2019Arpizio said.<\/p>\n<p>Europe bore the brunt of a collapse in global tourism, with sales of luxury goods in the region down 36% at current exchange rates to \u20ac57 billion. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p><strong>Read:<\/strong> Here\u2019s How French and German COVID-19 Lockdowns Could Rattle Luxury-Goods Sales <\/p>\n<p>The Americas experienced less impact, with the market falling by 27% at current exchange rates to \u20ac62 billion. In the U.S., department stores face an uncertain future, and the map of luxury consumption has been redrawn to move away from city centers, Bain noted.<\/p>\n<p>The consulting firm expects the recovery to gather pace over the next three years, with the market returning to 2019 levels by the end of 2022 or early 2023, depending on macroeconomic conditions, the evolution of COVID-19, and the speed of return to travel globally.   <\/p>\n<p>Following on the second quarter, which was the worst the sector has ever experienced, there were signs of recovery in the third quarter.  <\/p>\n<p><strong>Read: <\/strong>Herm\u00e8s Shares Climb on Strong Demand in Asia. Why That\u2019s Good <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> for the Luxury Goods Industry.   <\/p>\n<p>French luxury group Herm\u00e8s International HESAF returned to growth in the third quarter, as consumers started buying its products again, including its classic Birkin bags. British luxury-fashion group Burberry UK:BRBY also returned to sales growth in October, and said the recovery was under way as it was attracting new and younger customers. <\/p>\n<p>Fourth-quarter sales are expected to drop by 10%, although the decline could be bigger, depending on the future evolution of COVID-19 and the additional restrictions that national governments could put in place.  <\/p>\n<p><strong>Read:<\/strong> China gears up for world\u2019s largest online shopping festival   <\/p>\n<p>Online shopping for luxury goods skyrocketed in 2020, almost doubling its share of overall spend to 23% in 2020 from 12% in 2019, as the pandemic forced a shift away from brick and mortar. Bain expects e-commerce to become the leading channel for luxury purchases by 2025.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Lina Saigol \",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Lina_Saigol\"><\/span>Lina Saigol <span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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But China is flourishing &#8221; Local consumption has roared ahead\u2019 across all channels, categories, generations, and price points in mainland China Chinese women walk by a luxury store in Beijing. Kevin Frayer\/Getty Images China will become the world\u2019s biggest luxury market by 2025, with&#8230;<\/p>\n","protected":false},"author":1,"featured_media":115632,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-115631","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/115631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=115631"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/115631\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/115632"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=115631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=115631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=115631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}