Chinese shoppers are rushing to luxury shops after months of lockdown. The luxury goods industry is hoping it can bring a recovery from the coronavirus pandemic.
Worldwide sales in the luxury goods industry dropped drastically due to coronavirus pandemic. Leading brands have to rethink their strategies in doing business as the shopping habits of shoppers have changed.
Some luxury goods companies noticed an increase in sales in China this spring after a long lockdown. Analysts described it as a trend of “revenge spending” saying the release of pent-up demand when people are allowed to go out. Retail sales of jewelry companies Tiffany raised around 30% in April and 90% in May compared to the same months last year despite a decrease of nearly 40% in its global sales in May. Burberry also stated that its retail sales have increased ahead of the last year and an increasing trend is shown.
Chinese customers may spend more money on luxurious goods at home since they are forbidden to travel outside. Two-third of sales from Chinese shoppers always buy goods in foreign companies. With the limitation to have foreign trips, shoppers have to buy their favorite items in the local stores. The same trend is noticed in South Korea as well.