20 Jun Chanel asserts that the influence of coronavirus will effect luxury sector over the next two years
Given the gradually getting under control of the coronavirus pandemic, French luxury goods group Chanel estimates that the residual economic consequences will impact the luxury market for at least the next two years.
“We expect that the global world will continue to have a detrimental effect on the luxury market for at least the next 18 to 24 months,” Chanel CFO Philippe Blondiaux told Reuters in an interview.
Amidst these assumptions, the group has seen a growth of 13 percent since 2019 and expects a financially viable end to the year. Earlier having to shut down many of its retail locations, nearly 85 percent of the group ‘s stores have now opened, with a massive sales rebound in China going over 100 percent for some weeks.
Evaluating the quality, Bain & Company, a research company, says the $310 billion luxury fashion sector may see sales drop this year by up to 35 per cent. – Adapted from Hypebeast