Tashkent, Uzbekistan (UzDaily.com) -- American consulting company Bain & Company and the Italian association of luxury manufacturers Fondazione Altagamma presented the Worldwide Luxury Market Monitor report on the situation on the global luxury goods market and the impact of the COVID-19 pandemic on it.

According to the report, “the unprecedented drop in market size happened for the first time in the history of measurements” due to restrictions imposed in connection with the pandemic.

1. According to experts, the market will show a record fall for the entire observation period by 23%. The segment of personal luxury goods (clothing, accessories, jewelry, etc.) will decrease from 281 billion to 217 billion euros in 2019. Also, the entire luxury market will decrease by 23% (to 1 trillion euros), taking into account premium cars, tourism, private jets, art and interior items, related services, etc.

Moreover, in 2021 Bain & Co. predicts growth of 10 to 19% depending on the macroeconomic situation. However, the market will be able to return to the indicators of 2019 only by the beginning of 2023.

2. Meanwhile, there was a sharp increase in online sales of luxury goods. Thus, the share of online distribution in total sales jumped from 12% in 2019 to 23% in the current year from 33 billion to 49 billion euros. According to forecasts, by 2025, Internet sales will become the leading channel in the luxury goods market.

3. As the economy quickly recovers from the pandemic, China will become the only region where the market will show growth at the end of the year. The segment of personal luxury goods in China will reach 44 billion euros, which is 45% more than in 2019. In turn, the actual collapse of tourism led to a collapse of the luxury goods market in Europe by 36%, to 57 billion euros. The American market will also experience a significant decrease - by 27%, to 62 billion euros, although not as significant as the European one.

In general, experts note that this year. became a year of profound changes in the way of life of people, as a result, the industry was hit hard by the suspension of international tourism and the ongoing quarantines. However, experts emphasize that the industry is committed to transforming operations and meeting new consumer demands, including the younger generation.