Luxury is a new game. These are the new rules

The pandemic has reshuffled the luxury industry’s deck. But brands that hope the game will return to “normal” are in for a rude awakening. With a handful of exceptions, most luxury brands lost money in 2020, with drastic declines in their core regions (Europe and North America). But these troubles were due to more than just lockdowns.
The unprecedented magnitude of China’s rapid growth in 2020 was a one-time effect. China will still be the top growth driver of the luxury industry in this decade but don’t expect 2020 growth rates to continue. Generation Z (consumers up to 25 years of age) has become the most influential consumer group and will dethrone millennials as the number one customer group for luxury by 2030. Read more…