After the strong impact of the pandemic, the recovery rates are favourable and are growing. And one of the leading indicators of this recovery is the luxury sector.
If we look back, we will realise that between 2008 and 2009, its value decreased, but in just two years, it recovered its growth, according to a report evacuated by Statista. This does nothing more than affirm Coco Chanel's words categorically: "luxury is a need that begins when the need ends."
The years have passed, and companies have demonstrated their ability to emerge stronger and with a high level of reinvention. For example, the value of shares in LVMH, the world's leading French luxury conglomerate, and Kering, owned by François Pinault, has steadily risen. Eduardo Irastorza, Executive MBA Professor at OBS Business School, stated, “When things are worse, luxury is more powerful”.
What will the world of luxury look like shortly?
The reaction capacity of this sector is enormous. Even though 2008 there was a great recession, and we are facing the pandemic, companies have been able to resist and still come out strong, to the surprise of some and the joy of others.
The statement made by Eduardo Irastorza that "When things are worse, luxury is more powerful" is true because the indicators clearly show that, despite the economic crisis and the subsequent consequences, luxury is a sector that hardly suffers at a time when the economy is affected.
This is because luxury acts as a haven or haven in times of economic unrest. These values are secure protection because they maintain and even increase their importance.