Luxury brands in the UK are preparing for a considerable decline in sales as the spread of coronavirus intensifies.
The brand-new coronavirus was a severe threat to public health as the number of the confirmed case in the UK increased significantly. Flights between the UK and China continue to be waived. Chinese shoppers account for 25% of complete UK luxury spend, and now this number stagnates.
The footfall influence is self-evident throughout London, and the outcome will undoubtedly be sorely felt on an international level, provided the high spend generated by Chinese consumers. No person knows how long the pandemic will last. Yet, the best scenario would be months before travelling numbers recover up towards last year’s.
The coronavirus has caused an unfavourable result on luxury demand and sales in the Chinese market. It said 30% of Chinese shops continue to shut down because of the outbreak in mainland China.
The impact on the luxury market is enormous. UK luxury loves the Chinese consumer because they’re an excellent spender, so it will certainly without a doubt harm retail sales, particularly at areas like Bicester Village.
The luxury brands are going to take a hit. It anticipates profits to be down ₤ 150 million, and we can see something similar for Mulberry. Bicester Village is empty, and it’s going to have a ripple effect on production and sourcing. A downturn is inevitable, and it could be much longer than the SARS outbreak in 2003.
In these dark times, luxury-goods business needs to do something about “right now”, plan for the recovery, and build the future. While the COVID-19 pandemic has made for a difficult 2020, we are confident that, with cautious preparation and agile execution, the luxury industry can efficiently defeat the crisis and arise more powerful.