How luxury fashion shopping habits are changing in times of pandemic
London Fashion Week Goes Digital
May 14, 2020
May 25, 2020
The coronavirus crisis has caused a tsunami for many industries and services, but especially for the fashion industry. I’m here. Sales fell sharply in Asia, which was first hit by the pandemic, with China leading the negative trend. Almost all luxury brands in China are closing stores or reducing hours, which is having a negative impact on their business models. Luxury brand executives we interviewed said the spread of the virus reflected declining sales late last year after a very positive start to January. According to these recent surveys of consumers, consumers have returned in droves since luxury stores reopened. Chinese consumers said he made more than 150 million international trips in 2018, and the virus could discourage them from visiting foreign countries and undermine local consumer confidence. . The luxury sector appeals to consumers around the world, and consumers who buy luxury goods in their own country generate his 20-30% of the industry’s revenue. It is estimated that about 10-15% of global luxury goods sales, or $1.5-2 billion, are purchased outside mainland China. As shopping has become an integral part of the travel experience, Asian shoppers are taking advantage of lower prices in Europe to buy luxury goods abroad. Buying luxury brands from their country of origin is associated with a sense of trust and enthusiasm. All recent travel restrictions have stalled this key driver of luxury spending, but even after restrictions are lifted, spending on luxury fashion is expected to rise significantly in the coming months. COVID-19 is expected to impact the luxury category as consumers start making up for lost time and rewarding themselves. As a result, demand for luxury brands will rise again as strict quarantine rules are eased and people return to work. Luxury spending is likely to come in the form of cash, but not everyone buys a Hermès bag. 18% say they are buying less cosmetics and luxury goods online since the shutdown. Half (53%) admit to spending less on fashion because ‘it just won’t happen’.
Data shows that 46.1% of consumers are more likely to shop online than in stores due to fear of the coronavirus outbreak. At the same time, 64.65% said they were less likely to purchase personal care products such as cosmetics online at the time. When asked about brand loyalty, he said 52% of all consumers felt greater loyalty if the brand communicated effectively and showed how it helped people at the time. I answered. Concept stores take visitors on journeys of discovery and often showcase new and exciting product ideas, while consumers are looking for cheaper alternatives. Couttigane said: Securing enough sales to support store profitability has been the same, but it’s become more difficult since Covid-19 ushered in a new era,” he said. Neiman Marcus, the first national retailer to file for bankruptcy following the coronavirus crisis, has become the second-largest retailer in the U.S., behind Macy’s. said the pandemic had created a devastating financial situation for the sector. Last week, Morgan Stanley analysts found that overall US retail fell 9.1%, clothing trade fell 3.9%, and luxury goods trade fell 14.7%. While they expect the final numbers to worsen and support containment, many retailers have voluntarily closed stores or extended hours, expecting this to be just the beginning of a panic virus. The short-term impact will be an increase in shifts away from discretionary purchases that can impact consumer spending as consumers focus on purchases of daily necessities and core components. I mean Retail across the board, and the luxury industry in particular, needs to show how they supported people (health care and essential jobs) during the pandemic. And if you want to bring customers back, you have to be very innovative, caring, and have a greater sense of purpose and values. We drove to both physical and virtual showrooms.