When the coronavirus crisis subsides, the luxury sector will eventually bounce back, but the market will have changed, write Jean-Noël Kapferer and Jean Revis.
The world is experiencing one of the most devastating crises since the Second World War. For most people, its impact will be greater than 9/11, SARS and the subprime mortgage crisis put together.
During those crises, the travel and hospitality industry endured revenue losses of 25 percent. Today: 90 percent. Air travel passenger traffic is down by over 90 percent and will not be back any time soon, and hotels are as empty as the airports… or luxury stores, which depend heavily on overseas consumers: Chinese travellers alone count for 27 percent of the overall luxury market.
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