What are the current Market trends of premium/niche market? | Candider
What are the current Market trends of premium/niche market?
17th May 2020 3:20 pm
Business expert
The following result is obtained by our Internet Research Algorithm: • While it’s too early to quantify COVID-19’s total financial toll on the sector, the pandemic has certainly shaken some of the foundational aspects of the luxury industry—and some of these changes could be permanent. • The luxury market has already received a downfall due to the emergence of e-commerce last year. • Luxury companies have pivoted to address urgent public-health needs: factories that produced scarves and perfume now manufacture face masks and hand sanitizer, and many luxury groups have made monetary donations to hospitals and other not-for-profit organizations. • Restriction on travelling has introduced a huge downfall in sales of luxury goods, 20 to 30 percent of industry revenues are generated by consumers making luxury purchases outside their home countries. • The trend was negative in the airport channel, as the drop in air traffic. • Luxury shopping by travellers will take longer to recover, as countries maintain restrictions on travel to prevent further waves of the outbreak and some people remain nervous about flying or cruising. • Closure of the physical stores has affected this market at a very large level, as many luxury brands depend upon physical departmental stores for their sales. • Chinese travellers contribute 35% to this market. • Strengthened local pride: Public opinion during the outbreak has sometimes stigmatized certain nations, triggering assertive displays of cultural pride in those territories. Brands need to avoid inflaming these local sensitivities. • The market started allocating a greater share of investment to the online channel. Explore new ways of partnering with established e-retailers. Step up your personalization efforts in digital marketing.
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