Covid-19 increasingly impacting fashion, luxury spending worldwide, except in Asia
Consumer confidence is worsening as the second wave of the Covid-19 pandemic is spreading, and further health protection measures are being deployed. Uncertainty is affecting consumption expenditure, especially in the fashion and luxury sectors. According to the latest ‘Global consumer pulse tracker’ survey by Deloitte, carried out with consumers from over 15 countries between August 22 and October 3, purchasing intentions are declining significantly. Another survey, focusing on the Montenapoleone luxury shopping district in Milan, revealed a drastic drop in footfall.
According to the ‘Global consumer pulse tracker’ survey, consumer intent to spend more on apparel and footwear is falling by 15% worldwide for the month of October. It is falling by 27% in France, by 21% in Italy and by 18% in the USA, and the forecast for November is for a further downturn. Only Asia is bucking the trend, with the intent to spend more recorded as being on the rise by 26% in China and by 13% in India.
While a rebound in fashion spending had been detected in the summer, the consumers interviewed by Deloitte, confronted with an economic and health outlook that is again troubling, are clearly inclined to reduce their spending on discretionary items.
A trend that is even more evident in the luxury goods sector, as shown by a study carried out by Deloitte with MonteNapoleone District, the association of the companies operating in Milan’s luxury shopping district, in and around via Montenapoleone. Since the beginning of 2020, the number of unique visitors who passed through the district has fallen by 57%, from over 8 million in 2019 to 3.4 million in 2020.
The number of foreign visitors in particular has plummeted, falling by 78%. Deloitte notably observed a total absence of visitors from China, and a decrease in those from Russia. Instead, the length of stay by foreign visitors has increased, rising by 23%.