What's Inside

As a discretionary retail sector, luxury was dealt a significant blow by the coronavirus crisis this year. In this report, we assess how the coronavirus pandemic has affected the US luxury market, and its potential path to recovery—using proprietary consumer survey data. 

We discuss the impacts of Covid-19 on the Chinese and US luxury markets: 

• Depressed demand and spending opportunity in China
• Lower spending, fewer visits to malls and less traveling in the US
• Actions taken by luxury companies to help fight the pandemic

Looking ahead to the recovery of the US market post crisis, we consider the following key content: 

• Signs of recovery for the US market—including changing consumer sentimentand store reopenings 
• Positive factors for sustained market improvement—including a consumer preference for product over experience and demand for enduring value
• Expectations for the US luxury market to return to growth following a Covid-19 overhang—using the 2008 financial crisis as a guide
• Learnings from the China luxury market, in which there has been a rapid return of demand—including recent management commentary on luxury companies’ performance in China 

This report includes highlights from Capri Holdings, Chanel, Kering, LVMH and Tiffany & Co. 

Click here to view Coresight Research’s ongoing coverage of the coronavirus outbreak in China.