Asia helps Cartier, Burberry sparkle in a pandemic year
Covid-19 has put the industry through its biggest crisis of recent years, but the growing appetite of shoppers in Asia is offering some hope
The global luxury industry continues to suffer from the impact of covid-19.
According to November estimates from Bain consultants, the market for personal luxury goods is set to have shrunk by about one-quarter last year, reducing to 2014 levels.
Burberry Group Plc, for instance, has reported a drop in its sales as the British fashion brand suffered from a new wave of lockdowns at the end of last year, says a Bloomberg report. Comparable retail sales were down 9% in the three months through December. Analysts had expected an 8% drop.
Geographically speaking, Burberry’s performance was mixed: The appetite of shoppers in Asia was strong with 11% growth but Europe and the Middle East saw a 37% deceleration, mainly hurt by the lack of tourists. The Americas also saw an 8% revenue decline, according to a statement Wednesday, according to the Bloomberg report.
The company said 15% of its stores are currently closed, with more than one-third operating on reduced hours.
Luxury goods group Richemont, on the other hand, has posted a 5% increase in sales at constant currencies for the three months to 31 December, driven by strong growth at its jewellery brands in Asia Pacific and the Middle East, says a Reuters report.
It adds that sales of luxury watches have contracted sharply during the covid-19 pandemic, but the jewellery category led by Richemont's Cartier brand has fared better, motivating LVMH's recent acquisition of US jeweller Tiffany that could change the competitive landscape.
Richemont said sales at constant exchange rates grew 5% in the company's third quarter, while sales at current rates rose 1% to 4.19 billion euros ($5.09 billion). Asia Pacific and the Middle East and Africa grew by about a quarter while Europe declined 20% and the Americas stagnated.
FIRST PUBLISHED20.01.2021 | 02:20 PM IST