Bain & Co., the 48-year-old American consultancy company headquartered in Boston, Massachusetts, often contemplated as one of the ‘Big Three’ consultancy firms across the globe, said in a research report on Thursday that the global luxury goods’ sector might just have left behind the pandemic’s fiscal fallouts this year, as a sharp spike in consumers’ spending in the United States and China, two of the world’s largest economies, on a swathe of big-ticket items ranging from high-end leather goods to shoes to jewelries, had spurred up prospects that global luxury goods’ sales would breach a pre-pandemic level this year.
Nonetheless, outlooks in a number of emerging alongside developing economies which are yet to push forwards with a feasible policy to vaccinate much of their population with anti-pandemic jabs, would likely to worsen further.
In point of fact, latest research report from Bain & Co came forth as business activities in the United States alongside a clutch of G20 economies, had amplified swiftly over second and third quarter of 2021, as an early-acceleration in vaccination campaign with more than two-thirds of entire US population having been fully inoculated against the pandemic contagion, led to an early lift-up in pandemic restrictions, vigorously boosting both manufacturing and services sector activities, while demands in China, the world’s largest market for luxury goods, remained strong at least until October this year, added Bain & Co.
Global luxury goods’ sales to blow past pre-pandemic level this year
According to Bain & Co research report, global sales of personal luxury goods item would hit $327 billion or €283 billion this year, around 4 per cent higher compared to 2019 on a constant currency exchange rate basis.
Meanwhile, addressing to a consumers’ behavior to purchase more this year following a dour 2020, Bain & Co partner Federica Levato, a co-author of the research report, said, “Brands are attracting a new customer base with strong marketing and online campaigns, while existing customers are buying more”.
Overall luxury goods’ sales were slumped by as much as 23 per cent last year, the largest drop ever in the sector.