Post by Paul Russell

𝗧𝗵𝗲 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝗖𝗼𝘃𝗶𝗱-𝟭𝟵 𝗹𝗼𝗰𝗸𝗱𝗼𝘄𝗻𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗟𝘂𝘅𝘂𝗿𝘆 𝗠𝗮𝗿𝗸𝗲𝘁 The #luxury market is certainly not exempt from the economic pressure caused by Covid-19 and the consequent lockdowns. Industry leaders such as #Hermes, #Burberry, #LVMH and #Richemont all reported a decline of around 40% in sales during the first half of the year. Johan Rupert, chairman of Richemont, which owns Cartier, IWC and Piaget, recently suggested that it would take 3 years to recover from this year’s lockdowns. The only part of the world where there seems to be some resilience against this decline is Southeast Asia. Sadly, the global economic outlook for the rest of the year is just as gloomy. On the bright side, however, the lockdown has accelerated an inevitable development that may help revolutionise the luxury market: in terms of online marketing and retail. New forecasts indicate that the British luxury market is expected to generate 25% of its revenues online by 2025. The lockdowns have also amplified the power of social media platforms and enabled companies to interact and foster better relationships with HNW customers. Embracing a more relationship focused approach is probably the best way for luxury companies to emerge from this economic crisis.