A new Bain & Company report notes in the next three months that while the overall earnings of the luxury industry are likely to fall down by 60 per cent, increased spending by Chinese consumers will contribute to market recovery. It is estimated that about 50 per cent of luxury purchases will come from mainland China. Last year, the country accounted for nearly 35% of global luxury spending, but Bain indicated it would rise exponentially given recent lockdowns and COVID-19 ‘s threatening presence.
Reportedly, famous brands are seeing a increase in demand as well as finally easing stay-at – home initiatives for China. On the one hand, the number of visits to the store dropped half as compared with last year.
Bain expects the demand to hit new high rates between 320 billion euros and 330 billion euros by 2025. China will account for half of worldwide luxury spending, with the rest of Asia closely following. On the other hand, before recovery, the United States, Europe and Japan will experience a period of dip and stabilization.