Unsurprisingly, the luxury goods market has been badly hit by the coronavirus crisis, with an anticipated overall decline in sales of 18 percent in 2020.
Euromonitor International reports that before the crisis the market had been expected to grow by three percent from last year’s figure of 910 billion euros.
Fflur Roberts, who heads luxury goods research at Euromonitor International, told CosmeticsDesign-Europe that there were already unprecedented headwinds to be faced. “In recent years we’ve had looming threats of a trade war, increased global economic uncertainty and shifts in consumer behaviour and values – this has all led to significant shifts across the luxury goods landscape.”
The beauty industry will do better than luxury cars and hotels, she added.
Luxury goods overall will decline by between 20 and 25 percent in Switzerland, Germany, Italy and France, Ms Roberts said. “Big spend on all discretionary items might not be in keeping with the current customer sentiment,” she said.
However, her comments appear to be at odds with Elizabeth Taylor’s mantra: “Pour yourself a drink, put on some lipstick, and pull yourself together.”