Bain & Company, a consultancy firm that represents Italian luxury manufacturers, have issued their latest report on the luxury sector, and it appears that the fashion industry won't be fully recovered from the COVID-19 economic struggles until 2022.
The "Bain & Company Luxury Study 2020 Spring Update" outlines long-term economic issues, and although the year began with strong sales across major luxury retailers in mainland China, Europe and America, the current coronavirus lockdowns have caused a huge backlash on luxury sales, basically meaning that the economic expectations from major retailers have been written off.
Bain & Company have stated that they expect a substantial recovery time for the luxury industry and that 2019 sales levels won't be reached until 2022 or even 2023, then eventually sales should return back to their normal, expected levels. Still, luxury conglomerates have continued to take the current pandemic on the chin. It's been calculated that all major luxury retailers have taken a combined nosedive in sales of 25% in Q1 (first quarter) 2020 and expect sales to continue to fall even further by the back end of the year — with predicted levels reaching a decline of 35% lower than 2019. The study expects end-of-year sales to reach around £158 billion to £193 billion.
You can read the full report here.