The impact of the СOVID-19 pandemic on the world market of elite goods

Abstract

Background. The market of luxury goods significantly affects world economy as a whole having billion turnover. Despite the rapid development in the last decade, the luxury goods market has now difficult times because of the COVID-19 pandemic.
The aim of the article is to analyze the personal luxury goods market and identify trends and problems in its development under the COVID-19 pandemic quarantine measures and to predict its further development.
Materials and methods. Methods of data analysis and synthesis, scientific genera­lization and comparison, the Bain & Company, Deloitte Ltd, Altagamma Foundation, Fashion Consulting Group official data, statistical sources were used.
Results. The research of luxury goods world market showed the stable sales growth dynamics in the period 2003–2008 and in 2010–2019. Sales of personal luxury goods on the world market in 2019 were on the peak and amounted 281 billion Euro, having decreased by 23 % in 2020. Among the main reasons is the worldwide COVID-19 pandemic, key countries quarantine and the global economic crisis. The main trends in the world luxury goods market under the COVID-19 pandemic are: increase in local shopping caused by the tourist flows freeze; the growing role of generations Z and Y; digitization of luxury goods trade is expected to reach 30 % of the market by 2025; the strengthening of wholesale channels and providing accessible and reliable information to consumers.
Conclusion. It is established that uncertainty is going to be a distinctive feature of the luxury goods market in 2021. The full recovery of the world luxury goods market is predicted only by 2023.