The COVID-19 pandemic has dramatically changed the retail industry almost overnight. As per recent reports by Bain & Co., and McKinsey, major luxury companies have swivelled focus to address urgent public health needs. Factories that were producing scarfs and perfumes are now manufacturing face masks and hand sanitizers. Mega fashion houses are producing garments for health workers and many from the automotive sectors are building life support systems. Several luxury groups have made monetary donations to hospitals, nonprofit organizations, and some have also turned their factories into health care centres such as Armani, LVMH, etc.
According to the reports, global luxury sales could drop up to 35 percent by the end of 2020.
The pandemic has also presented a paradigm shift in consumer behaviour, be it in daily life or consumer spending on luxurious goods. The situation has brought a major change in the consumers’ mindset and the value system that underpins their luxury buying decisions. Smita Jain, Director – MGLUXM, S P Jain School of Global Management says, “The impact may vary subjectively with regard to the country or the target population.”
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