How did 2021 benefited the luxury industry?

Summary of today’s article:

Not only the luxury industry is again struggling with the latest COVID-19-related constraints, but the holiday season didn’t affect much in luxury sales. 

The waves of crisis forced the luxury management team to review their operation plan and changes in their relationship between brands and consumers.

As cases are picking up again across the globe and more countries are coming up with new strict restrictions to travel. For example, France has dropped the newest travel restriction a couple weeks ago that you must carry a compelling reason to leave or enter France. (Which is why I was forced to cancelled my trip to London for my Christmas holiday ) Anyways, digital retail footprint has been a trend these days especially in China. According to Prada’s 2020 fiscal year report, Prada e-commerce sales increased by 200 percent last year. This positive momentum expresses the idea that with the help of technology and e-commerce platforms, it shows that digital retail might compensate with the loss from the physical stores. Exclusive in-store experience is always what luxury brands is aiming. Therefore, whether digital retail can be a permanent solution to cover the loss from the pandemic is yet to find out.

Some consumers may have bought some gifts ahead of the Omicron virus and everybody else before the travel restriction was announced but that almost ensures some may come for more with the help of e-commerce. In 2021, tough choices were forced upon the management teams in terms of staff allocation, rent renegotiations and investment priorities. Separately, as there are new types of the virus being discovered by the virologist such as Delta or the newest Omicron, travel conditions and virus-related restrictions changed very frequently. Consequently, this really trained the management teams as well as sales associates to become very nimble, adaptable and prepared for 2022. 

Source: JING DAILY

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Hi thereIf you’re new to my article my name is Daniel Tan. I’m a first-year student that want to enter luxury fashion marketing, currently studying at EDHEC Lille. I am still learning more about the fashion luxury world. If you like to nerd about fashion luxury or just luxury as much as I do, don’t hesitate to send me a message.