Bain & Co prepares the world of luxury for a recession

The consulting firm Bain & Company estimates a slowdown that will affect the entire luxury market. The rapid spread of the virus and the consequent health emergency has produced a traumatic stop on the protagonists of luxury, who will now have to reinvent themselves as quickly as possible to get out of the crisis that awaits them.

Despite the seriousness of the epidemic in China, the company suggests that a rather elastic recovery could occur already in these weeks, unlike in Europe, Japan and the United States, for which a slower growth post-crisis is expected.

However, the predictions of an improvement in the following years are all there, precisely because in the past the industry recovered from the blow of Sars’ epidemic in 2008.

“The fundamentals remain unchanged and will lead this market to continue its growth in the medium to long term” says consultant Federica Levato “an increasing demand from the Chinese middle class, a greater propensity to purchase luxury goods by new generations, and a continuous evolution of the digital channel “.