Top-ranked luxury sector analyst and author Erwan Rambourg launches a new book called “Future Luxe”. In a conversation with Scott Kerr, the author tells us what’s ahead for the business of Luxury !
In addition to describing trends that will reshape luxury over the next decade, Rambourg discusses how evidence of “survival spending” is helping fuel luxury’s rebound and why women’s influence on luxury spending and representation on company boards will continue to intensify.
He predicts a new era of M&A frenzy of big luxury players gobbling up vulnerable family-owned brands, and consumers reallocating traditional luxury goods spending into new premium realms like health, leisure, travel, and even cannabis.
During the conversation with Ker, Mr Rambourg explains that due to the repatriation of millions of Chinese consumers, unable to travel abroad, sales of luxury goods in the country were booming and will continue to grow. Besides, there is a better understanding of the Covid-19 pandemic by the Chinese population and the majority believe the government has handled the situation properly. They consider it a transitory period. Furthermore, the creation of wealth continues among Chinese families which favors the consumption of Luxury Goods.
According to Mr. Rambourg the only market apart from China which is able to present growth in the luxury sector is the American market.
Opposite to the 9/11 crisis, the Covid-19 pandemic did not provoke a sense of guilt in the consumers. Many of them have no longer traveled abroad and have not engaged in entertainment activities in view of the lockdown. Therefore, online shopping and second home retreats with renovations and refurnishing has helped maintain interesting levels of luxury sales by many brands.
The book sends the message that the changes caused by the pandemic were most probably changes that were needed in a market , before the pandemic, considered complacent, with good margins, steady growth and managers living on their laurels. Digital acceleration would not have been implemented by many brands as rapidly as it has been in view of the pandemic and the need to keep sales during lockdown periods.
The complete interview of Mr Erwan Rambourg is available through the podcast The Luxury Item – With Scott Kerr.
Source: Scott Kerr – The Luxury Item
