COVID-19 has impacted all facets of the consumer economy, and the market for luxury goods has not been immune. While luxury consumers may not have experienced the same economic uncertainty as less affluent demographics, the pandemic has forced them to find new ways to find and buy the luxury items they desire.
One area where affluent consumers have been most affected is travel. Our most recent luxury-focused research indicates a dramatic shift in travel plans, which has led to a major change in luxury shopping habits. Our research shows that 7 in 10 luxury consumers canceled planned international travel during COVID-19, and of those, 82% had planned to purchase a luxury item abroad.
This reduction in international travel has led luxury consumers to look closer to home for the luxury items they want—a development that would appear to benefit department stores and more established brands. However, one aspect of international shopping is difficult for local merchants to duplicate: the discovery of one-of-a-kind treasures hand-made by artisans in far-flung locales. If you’d like to speak with our Industry Research Expert and review our study in more detail contact us today.