The luxury fashion industry is one of many establishments around the globe that has been greatly affected by the ongoing coronavirus pandemic. According to CNBC, Bain & Company has released its latest luxury report dubbed, “Bain & Company Luxury Study 2020 Spring Update,” in partnership with Altagamma – an Italian luxury brand committee composed of companies in the fields of design, fashion, food, jewelry, automobiles and hospitality.
The global consultancy estimates that sales plummeted by “25 percent in the first quarter of 2020” and expects it to continue dropping towards the end of the year. Additionally, CNBC states that year-end sales may account for a total of €180 billion to €220 billion EUR (approximately $195 billion to $239 billion USD). Federica Levato, Bain & Company’s partner and the report’s co-author, said: “The speed of future market growth will depend on luxury players’ strategic responses to the current crisis and their ability to transform the industry on behalf of the customer.” Bain & Company expects the industry to recover by 2022 or 2023.