Daniel Langer, a consultant to some of the world's leading luxury brands, says that luxury items sector is more sustainable than others even though people spend less on luxury items during and after the crisis, as per Diamond Loupe.
According to the survey on the impact of crises and recessions on luxury spending carried out by Langer, the exceptional value or so called “value added on luxury” plays a vey important role and luxury brands are becoming more important to consumers. This is confirmed by recent reports of record one-day sales at the Guangzhou Hermès flagship store, a 50 percent increase in sales from LVMH in mainland China, and a 40 percent increase in luxury cruise bookings compared to 2019.
Langer says, that luxury brands have recovered faster and have surpassed non-luxury segments. The expert predicts that the same trends will be observed until the end of 2020 and in 2021, when global markets begin to recover.
According to mass media, 2019 was positive to luxury brands with billions of dollars spent by millennials. They are not afraid to add expensive name brands to their shop lists, and the luxury market has made sure to carry over this trend in the next few years.
Alex Shishlo, Editor of the Rough&Polished European Bureau
